Charlie Bean, the Deputy Governor of the Bank of England said that he does not believe that the UK's housing market is heading for another property bubble.
Bean said, "We wouldn't want to see a house price boom emerging which would have potential problems further down the road. I can't say we see signs of that at the moment. At this stage, you certainly wouldn't say there's a problem."
Bean said during a Federal Reserve Bank of Kansas City conference in Jackson Hole, Wyoming that the central bank is expecting an increase in housing transactions and pointed out that the housing prices are rising in line with the inflation in the country. A home value indicator compiled by the Royal Institution of Chartered Surveyors increased to its highest level in seven years.
Politicians in the UK have said that the government's schemes to help stabilise the housing market will not result in a housing market bubble, as suggested by some in the previous few days. Experts dismissed suggestions of a housing market bubble and said that package of measures to boost housing market is working towards increasing house building and housing supply in the country. UK's largest house builders, who have always claimed that the lack of mortgage availability has restricted recovery in the property market, have backed the claims by the government.
Article Source: http://newspoint.co.za/story/413/4042-uk-housing-market-not-heading-towards-property-bubble-bean
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