If there is one thing British people love to talf about it is house prices. Considering how reluctant they are to discuss their finances, it's amazing how that changes when boasting how much more their house is worth.
For 10 years in the late 90's and 2000's owning a house or flat was a one way street. Buy, sit back, watch value rise, sell or raise more money. Easy.
That stopped in 2008 with the financial crisis. But it seems to be back.
The Nationwide has produced it's latest house price report showing in the UK as a whole prices increased by 11.8% annually. This was totally eclipsed by the rise of 26% annually for London.
Houses remain out of the reach of many 1st time buyers with large deposits being necessary and many houses valued at 6 ot 7 times the average wage.
The bank of England has been issuing conflicting messages but the price rise is certainly catching their attention and no doubt leading to head scratching.
Chancellor George Osborne has set a few cats among the pigeons this morning. During the interview he suggested a new high speed 3 (HS3) line linking the cities of Manchester and Leeds.
George Osborne on BBC Breakfast
The cost he associated with it was £6 or £7 billion, which sounds a bit low. Of course the economic and financial benefits were talked up comsiderably with him telling BBc Radio 4s' Today programme he wanted to build a 'northern global powerhouse'.
With London being a 'global powerhouse' he said it was time to help the Northern cities to address their problems and grow.
