BOE warns on house price correction

Graham_Devon

The Bank of England has given a stark warning that the recent surge in house prices could end in a crash.

Sir Jon Cunliffe, one of the Bank's deputy governors, said it would be "dangerous to ignore the momentum that has built up in the housing market".

He also warned about a possible "sharp correction, with negative equity and an overhang of debt for many households".

His comments came amid reports that the UK's most expensive flat ever has been sold for £140m.

Sir Jon, who has responsibility for financial stability, predicted that house prices would continue to rise for some time.

Earlier this week the Nationwide Building Society said prices had grown by 10.9% over the past year, the highest inflation rate for seven years.

http://www.bbc.co.uk/news/business-27253097

MrRee_2

"predicted that house prices would continue to rise for some time"

So, he warns of a crash - but then says that the rise will continue for 'some time' .....................

In essence then, he has added absolutely NOTHING to anything!

I predict that the world will end, however I also predict that it will continue to evolve for some time ...... same thing, pointless!

GeorgeHowell

MrRee wrote: »

"predicted that house prices would continue to rise for some time"

So, he warns of a crash - but then says that the rise will continue for 'some time' .....................

In essence then, he has added absolutely NOTHING to anything!

I predict that the world will end, however I also predict that it will continue to evolve for some time ...... same thing, pointless!

Which world -- Earth or Zog ?

MrRee_2

^^ Give it a rest - please add some value to the threads, or disappear ^^

wymondham

George has his fingers in his ears and is singing loudly!

Bantex_2

wymondham wrote: »

George has his fingers in his ears and is singing loudly!

Doesn't matter, BoE are being vigilant. Just like they were in 2006.

Aberdeenangarse

MrRee wrote: »

^^ Give it a rest - please add some value to the threads, or disappear ^^

It's a great shame that this forum has gone downhill with postings from the likes of Trolls such as MrRee,and his partner in crime, the now departed MrPricklepants :mad:

wotsthat

As usual the question is 'what are a handful of politicians going to do about this?'. If enough people were bothered they'd stop selling houses to each other at ever higher prices.

Despite the hand wringing it does appear that most people are trying to achieve the maximum sale price possible rather than only adjusting for inflation.

mayonnaise

wotsthat wrote: »

As usual the question is 'what are a handful of politicians going to do about this?'. If enough people were bothered they'd stop selling houses to each other at ever higher prices.

Despite the hand wringing it does appear that most people are trying to achieve the maximum sale price possible rather than only adjusting for inflation.

Yep. If even our most ethical Percival of Moston near Manchester is not willing to sell below market value despite his posturing on this board, there truly is no hope.

Graham_Devon

wotsthat wrote: »

Despite the hand wringing it does appear that most people are trying to achieve the maximum sale price possible rather than only adjusting for inflation.

Do you seriously expect everyone to join together to sell their houses for less to each other to reduce house prices?

purch

You'd be rather silly to think that there won't be a correction at some stage.

NO market goes up, or down forever.

How sharp the correction is, when it comes will depend very much on the price action leading up to it.

The more momentum into an over bought situation you get in a market, the sharper the correction will be.

That's trading 101.