One for biggirlsblouse

There is an axcellent article on the London market here:

The way I see it around here (SW London) where prces up 20-25% last year continue to rise:

1) Wealthy immigrant buys up a Central London property for let's say £5m. 1) Current occupier moves to bigger, better, "more English" home in Esher - £2m. 3) He has a spare £3m which he spends on 6 buy to lets. 6 properties have left the market for good, with zilch being released on to the market, continuing the pattern of extreme shortage which is driving prices along.

Such people (as your article suggests) buy for the long term and will "ride out" any housepricecrash...so that would prevent it from happening?

I know what you mean..I bought at the (relative) high of 1975 (9600) and although prices dropped, because I stayed in the house until 1991 (the big crash!) it was still sold for 60k. They are building new housing here likes it going out of fashion and I know that he local council expect growth in the numbers of people to come to this part of the country...but why I ask?... it cant be employment because it is all service industries and manufacturing/refining. But then I think of the immigrants from eastern europe...plenty of those where I am...so maybe they are right.

I want to buy another house ...but I am mindful that my 100k share of this next property is gaining in value about 4k per year and the house prices in the area appear to be dropping about the same per year (since 2004)..so my gut feeling is to hang on. I still see the signs in the estate agencies saying "new price".... in the old post 1990 days it would have said "reduced price", but they dont want to scare the horses and risk a local housing collapse by talking the market down. My best bet I believe is to hold on until the "new price" signs disappear, then I know we are not in a contracting market anymore.