Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter