This cant be sustainable - was in London last week with my cousin. She is a 28 year old professional looking to buy a flat with her parents to get on the market. She liked a place in zone 3 and it was on the market for 240k for a small 2 bed flat. There were 60 viewings that morning and by the time she got home and called up to place an offer they had offers of 300k - 60k over asking. Its just bloody crazy.
London house prices rise 18% in year fuelling fears of bubble
House prices in London have increased by almost a fifth over the past 12 months, and are now 20% above their pre-crisis peak, according to the latest data from the country's biggest building society. In news that will fuel concerns of a price bubble in the capital, Nationwide building society said the average price of a London home had increased by 18% over the year and by 5.3% in the past three months alone, and at £362,699 was now more than twice the figure for the rest of the UK. "The gap between house prices in London and the rest of the UK is the widest it's ever been, both in cash and percentage ... (full story)