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Property Poses Great Risk to U.K. Economy

How high can London house prices go? You can hardly get on a bus or sit in a restaurant in the U.K.’s capital without some discussion along these lines.

When you look back over the past decade, the dip in London house prices around the credit crisis looks like a mere blip, instead of the descent many feared. In recent years, record low interest rates and burgeoning consumer confidence in the U.K.’s economic recovery, have made the rise in house prices seem almost unassailable.

Yet now there are worrying signs of a cooling. Will this be followed by further gradual rises? Or is London property in a bubble which is about to pop?

CNBC [1]

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