Mind the gap!

According to Credit Suisse the wealth gap in the UK is the widest of any of the G7 leading economies. So both the relative and absolute gap is wider. How is this possible? The short answer is property! In central London in the past year they have gone up almost 20% - that is not sustainable in the long term but in the short term many have made millions by sitting tight. The posh boroughs like Kensington, Chelsea and Westminster has seen well above average increases. The super rich have moved into these areas with alacrity with pounds to match. Moreover the relative political stability of Britain is another reason that the rich 'hedge their bets' in London property. Its nice to have a secure place for all those illegal monies to hide away. London and in particular the City is able to launder that cash in a very efficient manner - that the UK authorities will find hard to trace. So as the bible says 'the rich get richer and the poorer get poorer' or as Leonard Cohen memorably sings "that's how the story goes".