London is home to over eight million people. It is also called the capital of the world. The economy of the city itself, it is extremely unconnected to the rest of the United Kingdom, a Vatican style cosmopolitan city. At a time when the rest of the UK and Europe suffers from job loses and property prices falling, London seems to be immune to the economic recessions that plagues the rest of the world. The employment is rising in London according to the latest figures, balancing the figures for the rest of the United Kingdom, where job loses are increasing.The property market in London is a perfect example to illustrate the contrast between the city and the rest of the UK.
The properties in London alone, are worth more than the rest of the United Kingdom added together. Investors from all over the world, from Russian oligarchs to anyone who has money to invest follow the principle : safe as houses and invest in the brick and mortar business. London Olympics also helped grow the economy of the city state like, despite the recent riots. Massive construction projects have taken place, and many more are being planned by architects. Building works like the Shard , the Olympic village , Crossrail project, etc , are providing the city with investments into the property market and infrastructure.
And then there is of course, The City of London , the truly financial capital of the world, home to the bankers and financial business. Statistics show that most Londoners contributes 70% more to the national budget than the rest of Britain. But there is also a darker side to the statistics. The quality of life for Londoners is well below the standard for the rest of the UK. People work harder and longer, the so called rat race is the norm and everything is more expensive. For most homeowners in London, maintaining a property will cost them about 40% more than the rest of the UK. A plumber or an electrician will charge a small fortune and the cost of building a house extension or a loft conversion in London, can buy you a whole street in Liverpool, where £1 houses were put on sale recently by the local council, on the condition that the buyer will refurbish the property and has experience in a building trade.
In London, Battersea Power Station has been purchased by foreign property development and a decent sized apartment is expected to cost more £ 1 million. Because of the high demand of residential properties in London, some 800 apartments have been promised to be sold to British buyers, but foreign buyers will have the chance to buy a flat ahead of British buyers from London. The wife of the new governor of the Bank of England, recently complained that is impossible to find a place to live in London having a budget of less than one million. This summons the development of London in the United Kingdom, a two speed economy in a single country.