The problem with London's property market

It was just released today: the news that extraordinarily high taxation awaits homeowners in London due to the fact that over half of the average homes in London have now exceeded the inheritance tax ceiling.

This presents Londoners with a unique situation, their homes are worth more than ever, but they are also facing higher taxes than any time in history.

The solution to this is either wage increases that will help them to absorb  the new fees,  or lower  costs of living  that would have the same effect.

While some bloggers have noted that these costs are about the same as one would find  and other  pigeonholed in areas  in Asia like Singapore, the differences that  UK residents are taxed at a much higher rate   than those in the East .

Could it be that London is now facing  another property bubble  as cash rich buyers and foreigners  come in to park their money , drive up prices ,  making it increasingly difficult  for locals to afford  homes  that are, quite frankly,  nothing spectacular .

 To what extent central-bank policies  might contribute to the problem, remains to be seen , but without a doubt  the people  of London  will be  watching eagerly.