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It's only going to get worse, everything new built in London (very very small studios/1 bed flats) cost about £600k+ in the area I live in. Property developers

• TheOtherHobbes 10y ago
  Not for long. There's a glut at the very high end >£1m and prices are already dropping fast. This will only get worse when the foreign money dumps all its empty "investments" on the market. The high end >£600k will follow. I'd guess prices in the cheaper brackets will remain stable unless there's a big rate rise, because they're kept inflated by buy-to-let. But landlords with big mortgages are in a precarious position after the tax changes, and it won't take much for them to start losing money. The rental income on a typical BTL with an 80% mortgage used to be just £2k a year, now it's less than half that. Mortgage relief is dropping already, so expect to see some changes.