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Bubble Warning from senior economist

Graham_Devon
Graham_Devon Posts: 58,560 Forumite
Part of the Furniture 10,000 Posts Combo Breaker
in Debate House Prices & the Economy
A senior economist has warned about the dangers of a house price bubble, following figures that show prices are surging.

In its latest monthly survey, Nationwide said prices across the UK are now 5.8% higher than this time a year ago.

That figure is up from 5% only a month ago.

Howard Archer, the chief UK economist with IHS Global Insight, warned that policymakers need to be vigilant.

"The acceleration in house prices...will fuel concern that we could be on our way to a new housing bubble," he said.

He added that the UK is "currently some way off from an overall housing market bubble", but warned that the government will need to act "quickly and decisively" if the housing market does become overheated.
http://www.bbc.co.uk/news/business-24747950
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Comments

  • alleycat`
    alleycat` Posts: 1,901 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    In other news.
    Southern based "expert" talking about "southern" problems as whole country economics.
    I am shocked, no really.
  • Rinoa
    Rinoa Posts: 2,701 Forumite
    Would that be the bubble you never saw coming Graham? :rotfl:

    Anyway, what Howard Archer actually said was there is no current bubble, we're a long way off from there being a bubble, but if one ever occurred, the BoE would need to act.

    Not much of a story really.
    If I don't reply to your post,
    you're probably on my ignore list.
  • ILW
    ILW Posts: 18,333 Forumite
    Rinoa wrote: »
    Would that be the bubble you never saw coming Graham? :rotfl:

    Anyway, what Howard Archer actually said was there is no current bubble, we're a long way off from there being a bubble, but if one ever occurred, the BoE would need to act.

    Not much of a story really.

    Doubt there is much BoE could do anyway. Seem pretty impotent these days.
  • antrobus
    antrobus Posts: 17,386 Forumite
    I'd like to warn everyone of the dangers of the UK economy overheating. Of course, we are currently some way off from an overheating economy, but that's no reason not to start worrying about it.
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I like the part where he says: the chances of seeing another housing market bubble are "extremely slim."
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Surely keeping it under annual review is pretty tight.

    What could possibly happen in a year?
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • THE_MASKED_TURNIP
    THE_MASKED_TURNIP Posts: 84 Forumite
    Another day, another handringing post.
  • wymondham
    wymondham Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    ILW wrote: »
    Doubt there is much BoE could do anyway. Seem pretty impotent these days.


    they could print money.... or print money.. they are good at that!
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    wymondham wrote: »
    they could print money.... or print money.. they are good at that!


    They can give forward guidance subject to overriding world events.

    Is Carney actually here it has been very quiet.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Bubble Warning from senior economist
    I predict a triple dip recession.
This discussion has been closed.
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