UK’s Housing Bubble Chance Trivial: Report
On the word of a recent report, the housing bubble risk being faced by the United Kingdom is very slim.
The EY item club, a well-known economic forecaster, said that `Help to Buy'-like schemes were expected to bring an increase in house prices this year. Almost 3.5% hike could be seen in the same. However, the prices could go even higher i. e. by around 6.6% in the upcoming year.
Vince Cable, Business Secretary, affirmed that warnings of grave housing inflationary pressures could be seen in a few parts of the nation. Thus, the impact of `Help to Buy' scheme was being concerned by one of them.
Besides, Lloyds Banking Group's chief executive, Antonio Horta-Osorio, also came up with his issues during an interview. According to him, if a notable rise in the prices of houses was to be avoided, the easing planning restrictions were required to egg on new home building.
However, Peter Spencer, chief economic adviser at the Item Club, said that the efforts put in by government to renew the mortgage market were targeted and well-timed.
"House prices and transactions are only just recovering from the credit crunch and will be paltry in comparison to those of a decade ago", stated Spencer.
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