There is a real danger of a house price bubble in London. Discuss Essay - 11

There is a real danger of a house charge bubble in capital of the United Kingdom. Discuss - Essay ExampleHouse price increase in capital of the United Kingdom indicates that property dealing in capital of the United Kingdom is non a sustainable one. London house prices are becoming unaffordable by citizens as well as immigrants (Ogonna, Chris and Charles, 2013). The house prices are currently eight measure higher than that of salary of first time buyer. It has been observed that house prices have a significant shock on economy and banking sector of a geographical region. Increase in house prices clearly herald that middle income group is not creation able to purchase a house in London or nearby locations (Tyson, 2003). On the other hand, increased house prices in London are not only a problem for this region but shall also have an impact on meet regions. The house price bubble is well represented in figure 1. It is clearly evident that accept towards real estate is significa ntly high in London. Domestic and overseas demand in London is high so as to sustain real estate selling. People having normal reward are not able to afford flats or residential places in London. First-time buyer average increased to 159,804 in the previous financial year. A speculative bubble shall be formed in the coming age due(p) to high prices of houses in London. It is a real danger since maximum percentage of individuals would not be able to afford such high priced houses (Telegraph Media Group Limited, 2015). This might adversely affect economic conditions due to lack of residential places in the region. The argument is based on increasing gap between wages and house prices. Individuals need to possess sufficient funds in order to afford housing property. trade demand in real estate sector of London is triggered through prices bid by investors and buyers being inclined towards purchasing real estate properties. In the present scenario, price of a house in London is appro ximately 600,000 pounds. Other region in UK accounts for low prices much below pre-crisis peak and therefrom there seems to be a little danger