I am not an expert in the housing market, so I wanted to ask your opinions. Is this price rise in London sustainable? I look at the price declines in the USA and Japan and ask why the UK is different?
Of course prices are not sustainable. The average salary in London is approximately £30,000. If you want to live in an area that doesn't have alcoholics and gypsies defecating in your front garden a house will cost half a million pounds. Loans to income levels are ridiculous.
I know of an apartment near Mare Street, Hackney which sold for £600,000 to a Chinese investor. Totally bonkers. Mare Street is known as "murder mile" and smells of piss every morning after the vagrants have cleared off.
Prices might not be sustainable, but they still might go up further before coming down. The Chinese investor might be lucky if he exits at the right time.