The Bank of England is watching the UK’s housing market “closely” for signs of any overheating, policymakers say.
The BBC reports that The Bank of England is watching the UK’s housing market “closely” for signs of any overheating, policymakers say. The Bank’s Financial Policy Committee (FPC) said the recovery in the housing sector seemed to have “gained momentum” with average prices up 5% in August from a year earlier. It added that it was “vigilant to potential emerging vulnerabilities”.
However, the FPC said housing activity and loan-to-value ratios on mortgage lending were below historic averages. It also noted that debt servicing costs were low, and that the ratio of house prices to earnings was at the same rate as a decade ago.
For further information and full report: http://www.bbc.co.uk/news/business-24239742