According to Fitch Ratings, the United Kingdom has the second most overvalued housing market, second only to France, in the developed world.
The domestic economy is also seen to be vulnerable to shocks in the interest rates, income and asset prices. The report indicates that it is placed third on vulnerability.
Japan, Germany and Italy are reported to be the least vulnerable.
Our view
We are a small, postage stamp island with one of the biggest economies on the planet. Is it any wonder that there is demand to live and work in the UK. Land and property on a small island will always attract demand as we do not have anywhere to expand.