Unfortunately I don’t see it is a bubble – when interest rates rise I can see it stall for a number of years but for London and the immediate SE there is a shortage of supply and a huge demand. The only way to bring the price down is to

1. Increase supply (by many hundreds of thousands of new houses a year)
2. Raise interest rates to punitive levels and cause mass re-possessions
3. Reduce demand – somehow ship jobs to the North


1. This has all the NIMBYs out in force
2. Political Suicide
3. Been tried for the last 30 odd years but different governments with limited success

I think when London is not the "in" place to store money into property anymore, prices will drop. However until then

The issue is that those who are using it as a safe haven tend to be at the top end rather than the mornla normla (for London) prices so I dont see that affecting the average 2 bed flat / house etc

It does though. Inflation isn't very discriminatory. if you assume most people are trying to move up the house price continuum, those at the very top drag up those at the top who are trying to buy the very top. Those at the top then drag up those at the next rung below, and so on. Until a one bed flat in an area that is mostly on fire every friday night ends up costing half a million quid.

+1, absolute sh1tholes over here surrounded by the noisiest transport hub and a bunch of terrorist/drug dealers came to be worth a fortune because of the overall market. Even today they're priced unrealistically because many are afraid of missing a potential 'good wind'.