Thursday, Oct 29, 2015

Current UK economic slowdown may hasten the BOOM!

Telegraph: London on course to become next house price bubble fatality, warns UBS

''UBS warns "explosive" house price growth since 2013 has fuelled an overvalued market that could see - Soaring house prices in London have fuelled a "bubble-risk" that has left the capital most in danger of a correction out of all major cities in the world, UBS has warned.''

Posted by hpwatcher @ 04:44 PM (6399 views)
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8 Comments

1. hpwatcher said...

We ALL know it's coming. Clearly the assets are thoroughly incorrectly priced - forget affordability, that's artificial - so a bust is a real possibility.

When the last bear turns bull........

Thursday, October 29, 2015 04:45PM Report Comment
 

2. cyril said...

UBS said "caution" was warranted as London now risked a substantial price correction should the fundamentals for estate investment deteriorate"
Presumably in plain English this means that prices might go down if interest rates go up. Well knock me down with a feather.

Thursday, October 29, 2015 06:05PM Report Comment
 

3. libertas said...

The timeline they give for a crash is three years out. Nice, because folk will have forgotten the press release by then, and will be too wrapped up with prices rising almost inexorably until around 2026, at which point we will probably have a 2008 style moment, with prices falling and not rising again until maybe 2029 to 2032, with areas around London subject to Crossrail 2 being safeguarded as they become outer prime leafy suburban areas full of refugees from Hackney having children.

Thursday, October 29, 2015 11:01PM Report Comment
 

4. mister ed said...

@3

"outer prime leafy suburban areas full of refugees from Hackney having children"

That's funny.

Let's hope they check the Ofsted reports before they move in.

Thursday, October 29, 2015 11:07PM Report Comment
 

5. mombers said...

The real question is will the government throw everything they have at it to prop up prices? Given the ever increasing number of renters who are actually voters, the jury's out. We'll have to see...

Friday, October 30, 2015 11:28AM Report Comment
 

6. hpwatcher said...

prices rising almost inexorably until around 2026, at which point we will probably have a 2008 style moment, with prices falling and not rising again until maybe 2029 to 2032,

It's extremely silly to be relating predictions like that, especially ones so far ahead, and presenting them as if it's a fact. What foolishness.

The real question is will the government throw everything they have at it to prop up prices? Given the ever increasing number of renters who are actually voters, the jury's out. We'll have to see...

The UK is now rapidly slowing down, in fact the world economy is - including China slowing in a major way.
UK chancellors spending plans have hit the buffers....when lots of things start going wrong with the economy i.e. strikes, riots etc - clearly on the way - house prices will be the last thing on the mind of UK government.

Friday, October 30, 2015 12:09PM Report Comment
 

7. icarus said...

"The UK is now rapidly slowing down, in fact the world economy is"

It may be even worse than that: http://www.counterpunch.org/2015/10/30/offshoring-the-economy-why-the-us-is-on-the-road-to-third-world/

Friday, October 30, 2015 12:53PM Report Comment
 

8. letthemfall said...

You have your head in the seeded clouds, Libertas. They're out to get you.

Saturday, October 31, 2015 11:08PM Report Comment
 

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