London house prices out of control?

Buying a house in the London is becoming almost impossible for the average person. For the last five years property prices are sky rocketed, indeed a 4 bedroom terrace house in South West London (Southfields)  purchased for £150,000 in 1999, is now work a staggering £650,000.

The main reason for this has been the explosion in the Buy to Let market, seeing housing stocks being targeted by savvy investors keen to secure a long term return based on house price increases, while gaining short term income from rent.
In fact, its estimated that the first time buyer will need to stump up over £75,000 in deposits and fees to get on the ladder, and that first step is getting higher by the month.
The UK government has indicated its concern with the hyper inflation of house prices, but as yet has not stepped in to do anything. Indeed, the cynics amongst us might consider the fact the government makes a healthy profit from the likes of Stamp duty and in some cases Capital Gains Tax on properties.
Recent surveys carried out by job website, jobwire, indicate that salaries are no increasing as fast as prices are going up.
There can be no denying that prices are also be pushed up by aggressive estate agents keen to make a quick buck and break the "ceiling price" for certain areas.

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