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Realistbear

London Named As World's Most Expensive City For Housing

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http://news.viewlondon.co.uk/Housing_makes...y_17454229.html

9 August 2006 13:17:18 GMT
Rising house prices and rental costs mean that London is the most expensive city to live in on a worldwide scale, a new report claims.
The annual price and earnings study from financial services firm UBS places the UK capital at the top of a list of 71 cities in terms of living costs, with the Norwegian capital Oslo, Denmark's Copenhagen, the Swiss city of Zurich and Tokyo, Japan, completing the top five.

Mervyn said something this morning at the BoE's meeting that might give the irrational exhuberance pause for thought--in the long term house price increases reflect wage increases. What we have is a speculative bubble based on opinion whereas debt is real.

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Guest Bart of Darkness

Well, at least we can say the UK has something we're "better" at than everywhere else in these highly competetive days of globalization.

Utter insanity and delusonal madness in house prices.

Makes yer pround to be British doesn't it?

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http://news.viewlondon.co.uk/Housing_makes...y_17454229.html

9 August 2006 13:17:18 GMT
Rising house prices and rental costs mean that London is the most expensive city to live in on a worldwide scale, a new report claims.
The annual price and earnings study from financial services firm UBS places the UK capital at the top of a list of 71 cities in terms of living costs, with the Norwegian capital Oslo, Denmark's Copenhagen, the Swiss city of Zurich and Tokyo, Japan, completing the top five.

Mervyn said something this morning at the BoE's meeting that might give the irrational exhuberance pause for thought--in the long term house price increases reflect wage increases. What we have is a speculative bubble based on opinion whereas debt is real.

This isn't a huge surprise given that (foolishly) the City's hiring at it's fastest ever rate. Lots of people I know are relocating to London from other financial centres ( again, not a surprise given that Sarbanes Oxley is shafting business in the US). European IPOs are going well. On it goes.

I know the City isn't everything, but as a pure service and financing industry it's highly geared to the sentiment of clients and investors and so to performance of the economy. It's a bit of a canary in some ways.

If there is a bubble it's in the financial services industry. Keep an eye on Merrills. Worth mentioning it again: first to hire, first to fire. When they start a hiring freeze its time to sell property in Canary Wharf because they and other banks will be firing soon.

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There won't be a "crash" as in prices tumbling overnight, like many think.

The ecnoomy (whatever its doing elsewhere in the UK) is growing here at a stable rate, people are hiring again, labour is tight, wages are rising a bit, but not too much.

I know quite a few people who are buying flats right now aor have bought in the last year there is generally an air of confidence about London at the moment, not gloom or fear of the future, its a real go ahead place attracting people from all over the world.

It has got a housing supply issue, and has always had, but this is (belatedly) being addressed so upward pressure on prices will continue to ease and of course they cant rise spectacularly forever - not that they actually have been in London since 2003 anyway.

For longer term, its as safer market to plunge into for your first home (stress home not gambling investment) as many other cities with its diverse economy and industries. And as safe to do that now, provided you dont overcommit yourself, as it was last year!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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