Is London Leading the Way or Leaving the Rest of the UK Behind?

There seems to be two areas of the UK; not the typical North-South divide but the Capital compared to the rest of the UK (excluding some prosperous areas).  The booming London market seems to have now forgotten of the financial crisis leaving the majority of the UK still feeling the effects.

Rachel Waring, Panmure Gordon Analyst said: ‘In London we have seen strong demand with people in this market chasing houses. You do not see that in other parts of the country.’
 

In the Capital, the reports being released show that house prices are at a near all time high, whereas the majority of other regions show prices are down year on year since the financial crash.

£1Million luxury London homes will grow by 8pc this year, says Savills.  This is being driven driven by the quicker economic recovery in London, as well as rich foreigners buying homes in the capital.

Chief Economist at the Royal Institution of Chartered Surveyors, Simon Rubinsohn said: ‘Since the beginning of this year the London market has really begun to pull away from the rest of the country. A lot of other areas that had previously began to recover, like the South West or the Midlands, began to fall back again, because property developers were not sure how these regions would react to budget cuts and the shake out of jobs from the public sector that the new government promised.'
 

‘London is the only place developers are confident the private sector will create enough jobs to handle the public sector fallout.’