Research, or it could all end in tears

London is no longer simply more expensive than the rest of the UK, it's an entirely different ballgame. In fact, it's not even a ballgame. It's a game nobody has ever heard of before...

Section: Opinion

London is no longer simply more expensive than the rest of the UK, it's an entirely different ballgame. In fact, it's not even a ballgame. It's a game nobody has ever heard of before.
The contrast between London and the rest of the UK is growing starker by the day, according to the latest Nationwide house price index, issued yesterday.
London prices are up 18 per cent year-on-year in the first quarter of 2014, with the average home in the capital priced at just under £363,000. This is more than twice the level in the rest of the UK.
London, let's face it, has pretty much become a country within a country. Its peculiar microclimate, heavily influenced by overseas money, has now officially detached from the rest of the UK.
The Nationwide data also highlighted another growing divide - between the North and South of England. It's not quite as extreme as the one between the UK and London but once again the market is increasingly splintering.
During the past three months, there has, however, been a slight moderation in UK house price growth - and this is no bad thing. 
While people are more confident about their jobs and the economy, and are more likely to get mortgage finance, it does feel that confidence is sometimes tipping into over-confidence.
Home sellers, I read the other day, are getting over 96 per cent of their asking price typically - the highest percentage in a generation. Great news for sellers, but maybe not so good for buyers.
I've said it before and I'll say it again: there is a real risk that many buyers in the current market will be exposed if the market moves against them. If this happens when interest rates rise, then things could get particularly messy.
Buyers should always keep their feet on the ground and not get carried away, but the signs are this is happening less and less.
The timeless principle of Caveat Emptor should never be forgotten, especially in the capital. If you rush into a purchase without doing your proper research, and gearing yourself excessively, it could all, very quickly, end in tears.

Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/research-or-it-could-all-end-in-tears