It was somewhat inevitable that the UK housing market, particularly in London market would eventually burst. Prices have been rising to incredibly levels and this week The Telegraph (Ficenec, 2016) has predicted just that.
With commodities and oil prices at an 11-year low and the FTSE beginning to crumble the UK housing market will be the next casualty. There will be a delay for the effects are seen but this is only due to how inefficient the housing market is.
The downturn will be driven by the introduction of a tax increase on buy-to-let properties in 2017 and a decrease in oversea investors. Chinese buyers will be prevented from taking more then $50,000 out of the country each year and the Russian oligarchs have seen a collapse in the price of the ruble so no longer have the power to buy against the Pound.
John Ficenec (2016) UK house prices to crash as global asset prices unravel. The Telegraph. Available at: http://www.telegraph.co.uk/finance/property/house-prices/12087971/UK-house-price-to-crash-as-global-asset-prices-unravel.html