There have been endless conflicting reports over this one, as we know you know, but EY (formerly Ernst & Young) is now saying it believes the London property market is showing “bubble-like conditions”.
The influential EY Item Club believes that the average house price in London will hit £600,000 by 2018. That’s more than 3.3 times the average house price in the north east.
The economic group believes that super-wealthy foreign buyers are inflating house prices to create the bubbly market.
The EY Item Club’s senior economic adviser, Andrew Goodwin, said: “House prices across most of the country remain well below their pre-crisis peaks and there seems little danger of a bubble developing.
“But London, which is suffering from a combination of strong demand and a lack of supply, is increasingly giving us cause for concern.”
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