“Five years ago the towns and cities of northern England and Scotland symbolised the UK’s bullet-proof housing market. Prices were going up almost as quickly as new flats were being built. That has all changed now, of course. The days of endless price increases are over. It’s not necessarily a bad thing, however.., according to The Telegraph.
Yet the writer goes on to say:
“ … There is nothing mean about Scotland’s capital. Buyers are paying more than ever for the best homes. If Scots achieve greater independence in their 2014 vote, they could expand Edinburgh’s lucrative financial services sector and push up house prices …”
This promotional article states explicitly the connection between the “lucrative financial services sector” and rising house prices. The fact is, that – regardless of scarcity and demand – a blanket rise in prices cannot occur without the complicity of lenders keen to boost their own profits by providing extra funding: and they would not be able to do this if they did not enjoy licence-by-default to create the extra money required, backed only by the absurdly excessive valuations of other special-interest groups.
If Scotland does vote for “independence in Europe”, and the Telegraph article is correct in anticipating Edinburgh’s increasing dependence on financial services, the Scottish capital, like London, will see its native citizens increasingly moved into poverty-stricken ghettoes or onto the streets, as city-centre property is bought up by wealthy transnational nomads.
A far better prospect for an independent Scotland (released, of course from the restrictions of EU membership – after all, “independence in Europe” is a contradiction in terms) would be to legislate for a publicly-authorised national currency, issued without generating any debt at source. Spent directly into circulation on the maintenance and improvement of national infrastructure, this would gradually relieve the nation of the accumulated burden of systemic debt, permitting the development of a more balanced and prosperous economy.