"Gentrification has adopted an exaggerated and accelerated form in the capital, hurting communities from Brixton to Belgravia"
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"... What's causing the seemingly endless rise in London's property costs, and how long can it continue?
"Analysts stress the importance of buy-to-let investors and overseas buyers, often in combination – many new developments are snapped up by foreign buyers. However, they stress that the totemic figure of the overseas tycoon acquiring a Belgravia mansion to keep empty is actually quite rare: of 35,000 recent 'prime' purchases analysed by Savills, only 770 were non-primary residences for non-Britons.
"According to Henry Pryor, a property consultant, London's property market is, technically, in a bubble, as many people buy homes to rent out at yields well below the 6% net rate of return investment rule of thumb. He says:
"They are openly betting that the property will increase in capital value. And that's a big assumption.""Others disagree, saying London's unique position makes its market trajectory more similar to cities such as New York and Paris rather than, say, Birmingham.
"Professor Danny Dorling from Sheffield University argues that, while the timing is uncertain, the course of events is not:
"We're in a bubble. It looks like a bubble, it feels like a bubble. It's the enormous bubble in the room. The great thing about bubbles is, it could be this autumn, it could be 20 years' time.
It's like playing roulette: we haven't hit the nought yet but we know we will at some point."
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| Stella Creasy MP on the gentrification of Walthamstow - video |
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