Now the recession is here .

[dozy]

It's official we're in a recession ,not a little one but it could well be the biggest of all time . So why are prices soaring , the price of wood and building materials have more than doubled. House prices are up when they should be dropping as mortgage companies and banks tighten rules and lift deposits on loans. Folk are putting their money into property ??? If property owners down south are getting out of the market wholesale and financial managers are telling them to sell, sell,sell. Why are house in Caithness going up ,is it influx of new south acquired money . If so they deluded as my friend was ( his words not mine) Caithness and the highlands looks great and it is for the right kind of people. He lost tens of thousands on the value of his house and if he sells can't afford to buy one back in his home town because the prices down there has jump up. He says " he now trapped, can't stand the isolation and can afford to leave". I do hope that those who see the highlands as a new place to stay understand it ain't no Disneyland in tartan.

[orkneycadian]

Again, Dozy, we note that you are starting to see some of the things others have been seeing for a long time.

Indeed, not so much a recession, but the makings of a depression. And all self inflicted.

Prices do not necessarily fall in a recession. A recession is based on GDP, whilst prices are based on inflation (or deflation as the case may be)

We are in a recession as our growth is negative. Basically, folk are sitting about doing sod all.

Meanwhile, businesses are trying to compensate by increasing prices too cover increasing costs in order to stay afloat.

That's why you see increased costs in building materials.

Locally, it will not be helped by the influx of folk believing that escaping the cities to the highlands and Islands is a good idea. They used to be called "White flighters" but now have a wider range of reasons.

Either way, it's going to lead to the urbanisation of rural areas with everything going up in price. Oh, and a poorer service provision sure to increased demand.

Enjoy.