Quote:
Originally Posted by geoff956
We hear today that house prices are rising in the UK.
How can this possibly be good news for the large number of people who don't have a hope in hell of buying a property even at the existing inflated prices?
Is it in fact good news at all? Seems to me there's a general desire to climb back on the borrowing wagon we fell off not so long ago.
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House prices outside London and the south east grew by 1%. London and its vicinity is a crazy economy almost a law unto itself. Its property prices have risen almost eight times as fast as the rest of the country; fueled by cheap money from the BofE and government backed mortgages. The problem is that construction isn't producing the supply side so prices are inflating. If the minimum wage increases so will the cost of living, and as Britain's manufacturing sector deteriorates and its financial sector keeps eating more of the country's GDP, inequality will increase even more rapidly.
London is almost becoming a republic of its own!