According to UBS, London’s Property Is The Most Overvalued In The World
According to the Swiss bank, UBS, London’s housing prices are the most overvalued in the world forming the “the biggest price bubble.”
This statement has taken into account the ratio of property prices to incomes and property prices to rent, which have all reached record highs.
It also means that London’s property market is at risk of a price correction. Whilst UBS can not say this will in fact occur, their statistics show that any city scoring more than 1.5 is at risk of a bubble, and London has scored 1.88. Other statistics show that house prices in London have risen 6% above their 2007 peak and that the decoupling of the London market is ‘even more drastic’ considering the real average earnings have fallen by 7% since 2007.
To read more about this head to: http://www.bbc.co.uk/news/business-34676643