The Bank of England (BoE) says it is keeping a close eye on the risks of a housing bubble.
The BoE expects house price to climb 10% over the next two years before the market cools. It expects prices to rise in line with earnings from 2016 – historically about 3% annually. The Daily Telegraph reports that the BoE plans to “soup-up” its range of tools to prevent another housing bubble. These could include the return of the 30-year fixed-rate mortgage.
16/01/14 Times 35, 37
Daily Telegraph B1
Guardian 28
