Reuters: Economists doubt BoE’s ability to restrain property
The Bank of England could be unable
to cope with rapid inflation in the property market, according to a
recent Reuters poll.
There is no doubt that independent
agents have enjoyed the increase in property interest
caused by government schemes and a recovering market, but could
ever climbing prices be the first ominous signs of a housing
Reuters polled 22 economists to find their opinion, and while they
said a bubble looked unlikely, many doubted the Bank of
England’s (BoE) ability to control the property market should
prices start to inflate dramatically.
Currently a steady increase of 5.7 per cent is projected for 2014,
after this year saw a 6.5 per cent increase.
BoE Governor Mark Carney has moved to dispel any notions that house
prices will rocket as they are currently a third below pre-crisis
levels, the news provider reports.
In fact, average UK house prices actually recorded a slight drop
for the month of October. This however, is expected to be reversed
as the market moves into the new year.