Friday, Jun 15, 2007
First serious cracks in the wall
Times: Mind the price gap: the North-South divide
There is wealth of evidence (see article) that sentiment is turning. How quickly will that happen in London? Never, they say. "The South is set to outperform the North until 2016 and London will dominate for the next 6 to 18 months. Yolande Barnes Director of Savills Research" My, my, Yolande... 2016? How do you know about that? Why should London be immune from credit squeeze? (please do not mention city bonuses, you know the bulk of the market is made out of overstretched BTLers). In any case one reason to be jubilant is the following: "it seems likely that activity, not prices, will bear the brunt of any slowdown"... I think it will be activity AND prices, however sure we ll see huge layoffs among the EAs!
Posted by confused76 @ 03:04 PM (1254 views) Add Comment
7 Comments
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1. Scott said...
Why live in the south? Living standards are much higher in the north for normal people and you can get everything up north that you can in the south. The ignorant will pay for their ignorance. In thinking that the north is bad, they end up living in a leasehold outer London shit-pit flat in a dangerous area where English is not the first language.
2. Alan said...
I would like to know how Yolande arrived at her conclusions. Is she friends with Mystic Meg?
3. Drewster said...
As a southerner recently relocated to the north, I would have to agree with Scott.....
4. Mark Wadsworth said...
Scott, fair point, but for those who bought more than five years ago, their mortgage is pretty affordable and house prices are pretty irrelevant
5. Orwell said...
Never a truer word Scott
6. Utterlee said...
"Why live in the south? Living standards are much higher in the north for normal people and you can get everything up north that you can in the south. The ignorant will pay for their ignorance. In thinking that the north is bad, they end up living in a leasehold outer London shit-pit flat in a dangerous area where English is not the first language."
If you want to have a career in certain industries you have no choice but to live in the south, for instance I work in TV - London's the only place to be for that.
7. doomwatch said...
Utterlee, you are on the money here. I think it's safe to say the engine for UK HPI is London, fuelled by the massive increase in financial service jobs. However, not eveyone in this industry is on telphone number salaries and living in Chelskigrad. London cannot cope any more. It's infrastructure is f*cked and no one will want to pay studid money for a sh1t flat above a kebab shop.
Unless the government DOES SOMETHING (and I don't mean comission an investigation, involving clueless consultants) to encourage the fininacial services to move out of London and the SE, this problem will not go away ... until the next down turn. Hire and fire will unfortunately mean a lot a 20 somethings with over stretched mortgages in a lot of trouble.