The recovery in house prices has been accompanied by concerns that an unsustainable bubble is developing. At the moment, the indicators on housing market activity favoured by the Bank of England are not pointing to a housing market that is running out of control, and which therefore poses a risk to financial stability. But if market conditions are still tight by next spring, that risk will grow and Mark Carney may find himself having to rein in the housing market using untested tools.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services