Alex Chesterman, CEO of Zoopla, has said that talk of a property bubble is premature, claiming that London housing is high due to finite supply and enormous demand.
He said that he would not use the word “bubble” as this implies it is going to burst. However, Chesterman points out that London is not the most expensive city in the world but that maybe it should be, due to its popularity.
There have been concerns about the prospect of a bubble developing due to high demand, overseas investment and prices increasing due to the Help to Buy scheme.
Recent data from the Office of National Statistics last week showed that London house prices surged some 18.7 percent in the 12 months to April.
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