Westhill Property Consultants London, a Hampstead Heath based estate agency agrees with Dave Hill's following assessment writing in The Guardian Newspaper.
Big money investors from abroad have added to the problem but they are only one part of the story
Something isn't right about the London house price narrative that's enjoyed such favour in these parts lately. It began with a New York Times article two weeks ago in which an ex-pat Londoner mourned the departure of two neighbouring households for other parts of the UK, in each case blaming the capital's insane property price. This was described as part of a trend. But my first reaction was: "what's new?"
London's population is rising fast - driven primarily by birthrate - yet for years it's been the case that large numbers of people have moved out of the capital and into home ownership in other parts of the country. A 2010GLA report found that between 2001 and 2009 no less than 2.1 million departed for different locations in these islands, with most moving into owner-occupation - London property was too expensive. The size of the outflow actually fell during 2007-09 as mortgages became harder to get.
What seems to have happened in the past year or two is that a manic upward surge in prices has meant even more Londoners unable to buy a home in their own city...