Of course it's a bubble, but you need to look further into how the market is driven in the UK. I'm not saying everywhere will double in the UK, especially in the North, particularly as lot of areas up North have been flat for while now and people have bought very badly in terms of apartments in citis like Manchester and Leeds where I'm sure prices will drop if they are not already. But prices nartionally have doubled every decade for the past fifty years. Obviously past performance is no indication of the future, but London is the main driver for house prices in the UK and is going from strength to strength; there is even talk of it taking on New York as the world's no 1 financial centre and this shows no signs of abating. Alot of the money that flows into the London property market is from overseas and therefore not as affected by interest rate rises. Also, in terms of fiscal restraint more money flows to London as a safehaven because its recession proof, whereas previously investors would have felt safe putting money in Manchester or Liverpool, but not in the current market. The bubble vis a vis house prices to wages is very evident in the North, but the capital is different due to the huge discrepances in wage levels in the UK between London and rest of the country. If the South East of England were it's own country it would be the 11th wealthiest in the world; it funds the rest of the country and operates almost as its own state with different economic fundamentals - no wonder its packed to rafters and bursting at the seams.