The property market is no longer about people making a long-term investment in owning their shelter, but a place for the world’s richest people to park their money at an annualized rate of return of around 10 percent. It has made my adopted hometown a no-go area for increasing numbers of the middle class.
According to Britain’s Office for National Statistics, London house prices rose by 9.7 percent between July 2012 and July 2013. In the surrounding suburbs they rose by a mere 2.6 percent. The farther away from London you go, the lower the numbers get. When you finally cross the border into Scotland, house prices actually decline by 2 percent.
The gap between London prices and those of the rest of the country is now at a historic high, and there is only one way to explain it. London houses and apartments are a form of money.