London and HK facing housing bubble risk, says UBS

London

LONDON and Hong Kong are the cities most at risk of a housing bubble as real estate begins to look overvalued, according to UBS Group.

The UK capital is now the second-least affordable of the 15 urban centres studied by UBS, trailing only Hong Kong, the report said. Price-to-income and price-to-rent values have surged to all-time highs even as real earnings have fallen 7 per cent in London since 2007, UBS said.