Reuters: Economists doubt BoE’s ability to restrain property market

Reuters: Economists doubt BoE’s ability to restrain property market

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 bubble?

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.ADNFCR-1222-ID-801667218-ADNFCR

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