UK housing costliest ever, seems like bubble bursting

Housing Starts in the United Kingdom increased to 36530 in the third quarter of 2015 from 35960 in the second quarter of 2015.

While construction PMI came in at 55 in January of 2016, down from 57.8 in the previous month and the lowest reading since April last year. New business growth eased and job creation hit the lowest for almost two-and-a-half years.

A tiny terraced house that measures no more than 10ft wide has gone on the market in south London for a staggering GBP 800,000.

The average prices in London are now 50% above their pre-crisis peak in 2008, property values in Northern Ireland remain 44% below their pre-crisis peak.

Bank of England policymakers are inflating house prices by holding interest rates down at historic lows and will worsen the widening wealth inequality in the UK as younger generations struggle to get onto the property ladder, while those who are older and already on it grow richer.

That is according to a report by the credit rating agency Standard & Poor's (S&P). In the report, S&P economists say the central bank's gilt-buying £375bn ($546bn, €485bn) quantitative easing programme helped the UK economy recover from the financial crash.

For an instance, We happened to come across trendy UK housing patterns that have some considerable barriers. The house, generally labelled "unique features" by an estate agent in London, looks all the more unusual because it is sandwiched between two regular-sized homes.

It doesn't even have a proper back door - the interior suggested renovators had sought to maximise the property's space by including a folding aperture to the similarly narrow back garden. Located on Barry Road in East Dulwich, the 800 square foot property squeezes in two bedrooms and two bathrooms, despite being dwarfed by its neighbours.

In 2014, a garage on its own went on sale in the capital for an eye-watering £500,000. And last year, a three-bed flat above a pizza restaurant was being sold on Old Brompton Road - also for £800,000. The house comes in a long line of extraordinary London estate agent listings which expose everything that is wrong with the UK property market.

With construction PMI dropping down and such manipulative overpricing property, we reckon that a serious bubble should burst out in UK housing segment. Very recently, Carney, governor of the Bank of England, has also mentioned that problems with housing are the "biggest risk" to the UK economy. The CBI agreed, saying that a perfect storm is brewing in the housing market. Now is the time for action.