Housing bubble 'is the wrong word to use'

The London housing market is exhibiting "bubble-like" conditions, economic forecaster Ernst and Young has warned.

Asset-price bubbles occur after swift price rises set values at unsustainable levels, which then collapse.

However Stuart Law from Assetz property investment questioned whether there was a housing bubble.

"Prime central London has benefitted - a big mansion in Mayfair is a relatively safe place to put your money... but the rest of the country's still lagging behind," he said.