The ball is in the government's court as the Bank of England opts for light touch mortgage controls

Commenting on the Bank of England's stability report, Duncan Stott, director of the affordable house price campaign PricedOut, said:

"Mark Carney has today made it clear that that the Bank of England does not see it as their job to keep house prices under control. These light touch regulations mean we must look to the government to bring painfully high house prices back in line with what ordinary workers can afford.

"The prospects of a further 20% rise in house prices through to 2017, as predicted by the Bank of England, are deeply worrying. With wages rising at just 0.7% per year, we are calling on the government to actively target an end to house price inflation so that earnings have a chance to catch up.

"The housing market has far wider economic and social implications than the Bank of England's narrow focus on financial stability. While mortgage lending controls are a vital restraint on house prices, we also need the government get to grips with the dearth of housebuilding and the perverse incentives created by UK property taxes."


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  • commented 2015-12-13 19:18:00 +0000
    The Bank is not your friend. Unbelievable but true, in setting Bank Rate to control inflation the Bank excludes consideration of rising house prices and rents – the largest item in household expenditure. Proof? RP Index records rising house costs- so Bank consults Consumer Price Index instead- which doesn’t! Housing costs are how people measure inflation. Eddie George admittted to Treasury Select Committee in 2007 “We (the B of E) pushed up house prices” Yet the Bank’s instruction from Gordon Brown in 1997 was to keep inflation in check. The Bank has failed. But if yu want to grown the economy via rising house prices the Bank is a tearaway success. Mortgage income by banks grows by 7.9% pa – faster than China’s GDP. Buy2let, Right2buy and Help 2 by each boosts demand for teh same stagnant supply of houses- result? House prices and rents increase.
    This gives 5 banks + Nationwide a mortgage income of £0.9trillion., which they then invest in Securitised mortgage products , which yields banks a further £0.4trillion pa. This is the saviour of the Bank of England, the Chancellor, sterling and the City , and the five banks + Nationwide. .
    There is a better way.
    A Bank and Government policy of constructive growth (not based on rising house prices)
    and premised on stable house prices and rents and secure tenancies.
    ( falling h prices and rents are, unfortunately not desirable because they would trigger deflation in the wider economy. Mark Carney is currently telling everyone that housing volatility is the greatest risk to the economy .

    I have prepared a script for a series of twenty television films , each exploring a solution
    to one of the many housing sectors and adopting a relevant solution . The Macro economic (Bank and HMG ) factors are exposed, challenged and solutions advanced and evaluated.
    A team is needed as a ‘chorus’ to evaluate solutions advanced by each sector when challenged by a rovng reporter and tyro cameraman. Its called, Can Can’s Housing Big Bang. (Think Tin Tin) anyone interested?

    Light touch mortgage controls? Ha Ha. more like full on greenlight to mortgage morticians
    to screw ever rising mortgage repayments and fees for investment banks recklessly to speculate with.
    James Armstrong contributed to the Barker Review, is an experienced self builder with a background in television advertising and political economy.
  • commented 2015-12-13 19:17:59 +0000
    The Bank is not your friend. Unbelievable but true, in setting Bank Rate to control inflation the Bank excludes consideration of rising house prices and rents – the largest item in household expenditure. Proof? RP Index records rising house costs- so Bank consults Consumer Price Index instead- which doesn’t! Housing costs are how people measure inflation. Eddie George admittted to Treasury Select Committee in 2007 “We (the B of E) pushed up house prices” Yet the Bank’s instruction from Gordon Brown in 1997 was to keep inflation in check. The Bank has failed. But if yu want to grown the economy via rising house prices the Bank is a tearaway success. Mortgage income by banks grows by 7.9% pa – faster than China’s GDP. Buy2let, Right2buy and Help 2 by each boosts demand for teh same stagnant supply of houses- result? House prices and rents increase.
    This gives 5 banks + Nationwide a mortgage income of £0.9trillion., which they then invest in Securitised mortgage products , which yields banks a further £0.4trillion pa. This is the saviour of the Bank of England, the Chancellor, sterling and the City , and the five banks + Nationwide. .
    There is a better way.
    A Bank and Government policy of constructive growth (not based on rising house prices)
    and premised on stable house prices and rents and secure tenancies.
    ( falling h prices and rents are, unfortunately not desirable because they would trigger deflation in the wider economy. Mark Carney is currently telling everyone that housing volatility is the greatest risk to the economy .

    I have prepared a script for a series of twenty television films , each exploring a solution
    to one of the many housing sectors and adopting a relevant solution . The Macro economic (Bank and HMG ) factors are exposed, challenged and solutions advanced and evaluated.
    A team is needed as a ‘chorus’ to evaluate solutions advanced by each sector when challenged by a rovng reporter and tyro cameraman. Its called, Can Can’s Housing Big Bang. (Think Tin Tin) anyone interested?

    Light touch mortgage controls? Ha Ha. more like full on greenlight to mortgage morticians
    to screw ever rising mortgage repayments and fees for investment banks recklessly to speculate with.
    James Armstrong contributed to the Barker Review, is an experienced self builder with a background in television advertising and political economy.