I heard a story the other day about a woman who visited a development in the process of being built, to enquire as to the cost of a new flat there.
She was told that one man had recently approached the developer and arranged to buy every single flat.
Quite why we can only imagine for speculation. I imagine the man who has arranged to buy the development predicted that it would be worth a lot more than the sale price within the next six months to a year.
Such is the nature of housing market in London at the moment, financial investors are seeing greater returns in the London housing market than any other market.
This means more and more money pours into London housing, the price goes up further, and the reported short-term gains seem every more attractive to investors.
In this way the bubble grows.
The lady who enquired about the flats will have to pay more than the developer had put them on the market for, or will simply have to look elsewhere, knowing that every month of not buying, is a month where a certain section of London’s properties move out of her price range.
Until of course the bubble bursts.