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R K

London V Rest Of Uk Historical Price Ratio

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Thought this chart merited some wider discourse:

(thread title should of course read 'price growth ratio')

Lucian Cook @LucianCook

London v UK house prices - how quickly and how much the balance can shift....

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Edited by R K

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High prices do not mean better living......all that money printing has to go somewhere £85k in a bank at <1% interest isn't exactly enticing.....makes you wonder what home people will find for all the new pension pots maturing shortly?.....only problem in buying being ordinary working people will not be paying any kind of income that will provide a living pension income.....there has to be a new and better way....I am sure they will think of something. ;)

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London is at the heart of economic volatility - the enemy of business.

We know that housing is key to the economy. We know that London experiences far greater volatility than the rest of the country (who end up paying for it "unemployment in the north is a price worth paying to quell London inflation").

Why the hell don't they see this and manage the economy properly by asking themselves some salient questions.

What is it that makes London more volatile?

How do we go about reducing the damaging volatility of London?

We would get some radically different answers and long term policies if the questions were framed in this different way.

London = ZIRPLAND, the epicentre of central bank and goverment manipulation. First users of free money at the expense of everyone/thing else.

It is where the politicians have their taxpayer funded second homes / investment scams.

The UK will suffer for this and so will London in the long term. Those making the decisions and playing the fake regualtor and controller roles wil be long gone having taken their money off the table.

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The chart shows a clear pattern of London getting ahead of itself and then quickly being reversed and the provinces playing catch up. Peaks in 87, 02......2017? Amazing how often things are dictated by a reoccurring cycle. I'm sure London was ''special'' in 1987 and 2002, but of course this time will be different.

Not so long ago the hpi winners over the decade were places like Stoke on Trent and Rochdale......as the preceding decade had been mainly the provincial catch up phase. Obviously they will now be at the foot of league tables.

Ignore cycles at your peril...Brown did even though the Harrisonian 18 year one was staring him in the face and a crash pencilled in for 2007/8.

Edited by crashmonitor

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Yay, the Osborne/Carney hyper mega-bubble! Greater in extent and more ruinous than either the Lawson bubble or the Brown bubble. The acme of economic ignorance and political short-termism.

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And when London bursts the wider economy will suffer. It's amazing that anyone on low pay can afford to live anywhere in London.

HS2 should have been a high speed hub for the North and it should exclude connecting to London to give the North some cushion for when the London bubble bursts.

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The chart shows a clear pattern of London getting ahead of itself and then quickly being reversed and the provinces playing catch up. Peaks in 87, 02......2017? Amazing how often things are dictated by a reoccurring cycle. I'm sure London was ''special'' in 1987 and 2002, but of course this time will be different.

Not so long ago the hpi winners over the decade were places like Stoke on Trent and Rochdale......as the preceding decade had been mainly the provincial catch up phase. Obviously they will now be at the foot of league tables.

Ignore cycles at your peril...Brown did even though the Harrisonian 18 year one was staring him in the face and a crash pencilled in for 2007/8.

Exactly.

In '87 it was largely the result of Lawson's boom. Northern cities we're still reeling from the effects of the forced recession in the early 80s & lagging. London was benefitting from Lawson's free money, deregulation and the Big Bang. Similar to QE and the banks this time around.

My take is that because the UK is in the Sterling Zone, the interest rate is always too low for London relative to the rest of the UK. The BoE effectively sets the rate for the benefit of London/City. What it really ought to be doing now is raising the rate on all property in London relative to elsewhere. But of course it can't do that, hence why it's fiddling about with it's new toolbox (or is pretending to - in practice it's not done anything)

Edited by R K

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