London builders 'bouncing back from recession' | Business

London builders 'bouncing back from recession' | Business

The UK's widening north-south divide was laid bare today by a host of City updates from building firms whose fortunes increasingly hinge on more buoyant South East markets.

Surveys have shown London and the South East bouncing back from recession much more quickly than the rest of the country, as a lack of homes supports house prices while the jobs market remains more resilient to looming public-sector cuts.

Figures from building society Nationwide have highlighted that London is the only area of the country not to have suffered annual falls in house prices during the second quarter of this year, and they are now just 2% below their 2007 peak.