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Clydesdale Bank
07 December 2006 - SOUTH WEST HOUSING ‘TOO EXPENSIVE’ TO ATTRACT INCOMERS SAYS ECONOMIST
High housing prices are preventing people from moving to the South West, says a leading economist. Mr. Tom Vosa, Chief Economist for the Clydesdale Bank, revealed that the disproportionate relationship between house prices and incomes in the South West is making the area less attractive to workers who are not local. “This is good news for landlords, and the buy-to-let sector, which has been driving the service economy for some years now. However, it will make it more difficult to attract workers into the area,” says Mr. Vosa. In a presentation to business leaders at Clydesdale Bank’s Bristol offices, Mr. Vosa commented on the state of the economy in general, noting that the public sector expansion of recent years is now running out of steam. The South West is also failing to benefit from the recent boom in UK exports. “While UK exports have surged in the first two quarters of this year, the South West has not benefited at all,” says Mr. Vosa. “Export growth has underperformed since 2004 and there are few signs of any turnaround. This is due to a reliance in the South West on machinery and transport exports when compared with other regions in the UK, with industries such as aerospace currently struggling due to the weak dollar.” But the prognostications for the South West aren’t all doom and gloom. Male employment, for instance, is beginning to recover from the manufacturing slump of recent years. “Overall, the Global growth outlook remains solid,” Tom Vosa comments. “We will be watching Christmas trading reports with some interest. Any sign of weakness could be a trigger for a sterling correction. And we await the impact of the Chancellor’s pre-budget statement with interest!” ENDS *High Res images: www.publicitymatters.com/tomvosa* Further information: Bristol Financial Solutions Centre Antony Bryant 0117 989 6200 Publicity Matters Steve Noble / Danielle Delaney 01275 342734 / 07970 679359 About Clydesdale Bank Clydesdale Bank was established in 1838 in Glasgow and has a proud history of innovation and support for Scottish industry and communities. With 2,800 staff and around 200 branches, Clydesdale is one of Scotland’s largest banks. Clydesdale Bank became a member of the National Australia Bank Group in 1987. About the National Australia Bank Group The National Australia Bank Group is an international financial services group operating across four continents and 15 countries including Australia, the United States, the United Kingdom, New Zealand and Asia. As at 30 September 2004, the National had total assets of over (A$411 billion) £163 billion, assets under management and administration of (A$81 billion) £32 billion, assets under custody and administration of (A$443 billion) £176 billion, 8.4 million banking and more than 2.3 million wealth management customers globally and was ranked as one of the 30 largest financial services companies in the world by profit. Members of the Group in Europe include Clydesdale Bank PLC in Glasgow and Yorkshire Bank in Leeds. The National’s UK operations also include its Wealth Management Europe division, which provides financial planning, investments and insurance services to customers of its UK banks, as well as portfolio implementation systems and business consulting to financial advisers.
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