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Another significant contributor is the role of global investment. The UK, particularly London, has become a haven for international investors looking to park their money. This influx of foreign capital has driven up prices, especially in the prime property market, creating a trickle-down effect that impacts the broader market. The economic policies of successive governments have also played a role. Interest rates, tax incentives for property ownership, and planning regulations have all had a hand in shaping the housing market. For example, low-interest rates can make mortgages more affordable, which, in turn, can increase demand and push prices up. Tax breaks on things like stamp duty can also encourage more people to buy, again driving prices higher. On the flip side, planning regulations that restrict the supply of new homes can also push prices upward.
