Wednesday, 9 April 2014

Hardly surprising.

From The Daily Mail, a table showing the amount of mortgage debt owed to members of the Council of Mortgage Lenders.

The council’s breakdown puts total mortgage debt at £897billion. Its figures cover three quarters of the market and exclude smaller building societies and other lenders.

In other words, total UK residential mortgage lending is about £1,200 billion, the same figure it has been for about six or seven years.

London - £229.5 bn
South East - £162.3 bn
North West - £81.3 bn
South West - £79.6 bn
Scotland - £64.2 bn
West Midlands - £61.9 bn
East of England - £60.6 bn
Yorkshire & the Humber - £58.3 bn
East Midlands - £44.7 bn
Wales - £28.6 bn
North East - £26.1 bn

This is hardly surprising because if you multiply up the number of homes by average selling prices for each region, then London is approx. one-quarter of the total, so all things being equal, you'd expect one-quarter of all mortgage debt to have been originated on London homes.

See also Wiki: "London generates approximately 22 per cent of the  UK's GDP". On most of these measures, London comes out at around one-quarter and London and the South East together are nearly half.