It has been a long, painful slog for most Londoners since Lehman Brothers went under just over five years ago.
Yet one key indicator of human misery that usually explodes during a recession has barely flickered: house repossessions.
There were just 111 repos in London in July and the most recent national rate of 0.06 per cent of homes is the lowest since quarterly data was first published in 2008.
There are several reasons for this — banks have certainly been more flexible and understanding with families in arrears than they were during the early Nineties downturn.
But perhaps more importantly four and a half years of record low interest rates have allowed Londoners to muddle through even though it has often meant great personal sacrifice.
The risk is that these “emergency” rates to keep the economy afloat have become the “new normal”.
In the meantime, the cost of living has risen faster than wages and our ability to absorb increases in household costs has been cruelly eroded. That is why the prospect of rates going up feels so alarming. It is at least a year away, perhaps two, but rises are coming. Homeowners need to start planning now.
