Property Bubble Denounced As A Myth
Property Market Not Overheating
In a question and answer session the Chancellor has said that we are not in a property bubble. In his reply to a question he said: “Let’s not kid ourselves that we are in a property bubble”. The Chancellor is backed by figures released by the Office Of National Statistics that show that house sales and mortgage approvals were well below the peak of 2007. There has been recent calls for the Chancellor to abandon part two of the Help To Buy scheme that is due to be implemented in January 2014.
Help To By Scheme Part 2
Many professionals within the property industry are concerned that the second phase of this scheme will increase demand without increasing the supply. Currently the scheme is only being offered to buyers of brand new homes but this will change in January when it will be offered to buyers of second-hand homes. Senior economists suggest that the house prices are not increasing to unsustainable levels and that the London property market is skewing the average price of a UK home.
A government spokesman said that talk of a housing bubble makes good headlines but there is no evidence that prices were spiralling out of control. This is unlikely to happen as there is still a squeeze on family finances and wages are only 1% higher than a year ago. The Bank Of England has agreed by stating that the market is operating normally but that it is vigilant and ready to act if necessary.
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