“There are growing fears that if we are not in bubble territory yet it won’t be long before we are, with the Bank of England raising the alarm about borrowers over-extending themselves.”
“Supply constraints are such that if Help to Buy really did take off then a housing bubble might be possible. If more flats and houses are not built, a significant spike in mortgage transactions could substantially push up house prices. But we are nowhere near that just yet. While the recovery in property prices in London continues apace, this is far from the case throughout the UK. It is also worth remembering that transaction levels remain very low compared with what they were at the height of the housing boom.
London continues to be a special case that almost needs its own house-price index, with no sign of a slowdown in price rises in the capital.”