The average property increased in value by nearly £10,000 between April and
May according to figures from Rightmove.
This is the biggest jump since Rightmove's index started back in 2001. The average property is at a record high of £272,003. The majority of the boom is still centred on London. A 16.3 per cent jump, compared with a more modest 4.9 per cent in the rest of the country.
Mark Carney, the Bank of England’s Governor is considering capping mortgage ratios to salaries to subdue the market, as well as pondering the future of Help to Buy.
David Cameron said: “We have given the Bank of England the duty to make sure that bubbles are dealt with in the economy. They have all the powers they need to do that.
Actually it was Gordon Brown that gave the Bank of England the duty to "deal with bubbles".
ReplyDeleteUnfortunately, they conspicuously lack the powers to deal with that. Cameron wouldn't understand that, because he doesn't understand economics. He has absolutely no clue how housing bubbles occur.
If the BoE could control bubbles, why do they keep happening?
In fact, the Coalition Government is causing the current sharp increase in housing prices with the Help to Buy policy.
This might feel good to us landlords in the short term, but it is just storing up more problems for the future. If the current trends continue, another financial crisis in a few years' time is inevitable.