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London housing market shows bubble risk, warns EY Item Club

Overseas investors are bidding up prices while buyers take on more debt

Keeping up with the neighbourhood: Values in London's best districts are 27 per cent above their 2007 peak. - PHOTO: BLOOMBERG

[LONDON] London's housing market is beginning to show "bubble-like conditions" as overseas investors bid up prices and buyers take on more debt to purchase properties, according to a report yesterday by the EY Item Club.

Homeowners are now borrowing as much relative to their income to...