Property In London is Most Overvalued

London property is the most overvalued according to Swiss Bank UBS. In fact they are warning London is creating the world’s largest property price bubble. It says this is caused by the ratio of house prices to income, and house prices to rental prices, which increasing all the time and setting all-time highs.

The bank warns London is at risk of a house price correction, however it is difficult to predict when this will occur. Since 2013 London house prices have increased by 40%, while earnings have dropped by 7% since 2007. The bubble has been created largely by foreign investors, along with the Governments Help to Buy Scheme. Other cities at risk of a house price bubble include New York, Chicago and Boston.