Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Everything you need to know about the UK's misfiring economy in one graph

Everything you need to know about the UK's misfiring economy in one graph

Behold, all you need to know about the lopsided and misfiring state of the British economy in one graph.  Last year, the value of residential property in London and the south east overtook the value of housing in the rest of Britain & Northern Ireland combined.

 

Considering the aggregate regional levels hides the real concentration of property wealth however, as tracked by estate Savills.

The 10 most expensive London boroughs have an aggregate value equal to the total residential property markets of Scotland, Northern Ireland and Wales: both add up to around £550 billion. Within those ten boroughs just one, Westminster, accounts for £95 billion – twice the value of Edinburgh’s housing stock and three times Bristol’s.

There are a lot of reasons for the above, but probably the largest contributors are the on-going concentration of wealth at the top of the income distribution, the continued UK dependence on the City and ‘security’ capital flows which could yet turn into the ‘hot’ kind.         

Either way the effect is obvious:  London is the only part of the UK which has seen growth in real retail spending since 2006, thought to be around an annual 0.7%.

Alongside the south east Capital Economics expects this growth to accelerate to 1.5% a year to 2016, while other areas of the UK continue to contract.

Job creation has also become more concentrated. The ONS’ Labour Force Survey showed that of the 641,000 increase in jobs between September 2010 and September 2012 around 43% or 276,000 went to Londoners. That’s almost three times the 15% London share of the job market at the beginning of the period.    

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter