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Bank Of England Ready To Act On House Price Bubble

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The controversial scheme to make mortgages cheaper is expected to be reined in within months amid concerns that the housing market is in danger of overheating. Chancellor George Osborne said the Bank of England was vigilant about the rising cost of property in many areas and would intervene if needed. He was responding to an international report that Britain's booming housing market was becoming a threat to economic recovery. http://www.dailymail.co.uk/news/article-2621851/Squeeze-help-buy-mortgages-Bank-England-ready-act-house-price-bubble.html

London, we have a problem!

Edited by rollover

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"Cutting the maximum purchase price under Help to Buy to £300,000 from £600,000 would address concerns that it is fuelling a house price bubble, senior figures believe."

So pretty much no effect.

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Mr Osborne, said in Brussels yesterday: 'I've said we should be vigilant about the housing market and this government has given the Bank of England the powers, the tools to do that in an independent way.'

But not in London where there's a mega bubble as Carney has denied the BoE has the tools to do anything about the London mega bubble.

So they haven't given the BoE "the powers, the tools to do that in an independent way" in London - just to repeat even Carney himself has said he doesn't have the powers, the tools to do that in an independent way in London.

The Chancellor added: 'That didn't exist before but we've learnt from the mistakes of the last Government and the Bank of England has the tools and independence to do what it feels it needs to do to help to contribute to building that resilient economy.'

No they've learnt nothing - they've learnt nothing from the last government or the government before that or the government before that or the government before that or the government before that or even going back to Edward Heath's government in the 70s and even beyond that. No they've learnt nothing or at least nothing that would actually benefit the UK economy.

It's worth repeating again that Carney/the BoE said that they don't have "the tools and independence to do what it feels it needs to do to help to contribute to building that resilient economy.' " - if by that sentence Osborne is trying to suggest that they have the tools and independence to control the London mega Bubble.

How many times are they going to claim that Carney has the tools when Carney has said he hasn't.

Osborne must think his audience in Brussels is stupid - or do they just share Osborne's not funny joke on UK people.

Edited by billybong

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I added a comment but they are moderated and I stand a cat-in-hell's chance of it being published.

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"Cutting the maximum purchase price under Help to Buy to £300,000 from £600,000 would address concerns that it is fuelling a house price bubble, senior figures believe."

So pretty much no effect.

Haha, yep, apart from 2 buyers in London, it won't affect anyone!

I wonder if it will have any affect on sentiment? Put a bit of a max cap on prices in peoples minds?

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London, we have a problem!

Strange, when I broight the obvious bubble to their attention several months ago they told me there was no bubble....now there is a bubble....If they can't see a bubble forming and i can...either they can't do their job or they wanted/caused the bubble, which is it ?

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"Cutting the maximum purchase price under Help to Buy to £300,000 from £600,000 would address concerns that it is fuelling a house price bubble, senior figures believe."

So pretty much no effect.

But it'd mean prices up to 300K could be artificially inflated as opposed to diluting it up until 600K.

Gidiot needs sacking for this then cancel it.

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Quick get out of the bubble before it bursts.

It's the CON uncertainty principle...if you're part of the bubble getting out collapses the bubble making getting out impossible.

POP.

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Good cop / bad cop.

Osborne writes subsidy cheques then washes his hands of all responsibility by instructing BoE to sort it out.

BoE tell Chancellor they can't sort it out for cash buyers in London which is what's (mostly) skewing national average prices.

Chancellor reminds the media it's not his problem.

What a shower of useless public schoolboy w*nkers these clowns are.

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Good cop / bad cop.

Osborne writes subsidy cheques then washes his hands of all responsibility by instructing BoE to sort it out.

BoE tell Chancellor they can't sort it out for cash buyers in London which is what's (mostly) skewing national average prices.

Chancellor reminds the media it's not his problem.

What a shower of useless public schoolboy w*nkers these clowns are.

Only useless if you are a hard working real tax payer....

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http://

www.telegraph.co.uk/finance/newsbysector/banksandfinance/10478899/Carney-Bank-has-no-power-to-stop-Help-to-Buy.html

http://

www.standard.co.uk/news/politics/bank-of-england-has-no-control-over-soaring-property-prices-mark-carney-tells-mps-9184131.html

http://

www.huffingtonpost.co.uk/2014/03/11/mark-carney-house-prices-interest-rates_n_4939641.html

Edited by billybong

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When they say they are ready to act, they actually want house prices to rise to at least their 2007 levels so they are ready to act to make them go up even faster. There is no way they are going to stop Help To Buy, this was promised to last until at least 2020 in the last budget. What they will do is to take action to make prices rise faster. How about threatening to withdraw Help to Buy to make people panic and take it out before it disappears when really having no intention of withdrawing it? That should add a bit of extra fuel to the fire.

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When they say they are ready to act, they actually want house prices to rise to at least their 2007 levels so they are ready to act to make them go up even faster. There is no way they are going to stop Help To Buy, this was promised to last until at least 2020 in the last budget. What they will do is to take action to make prices rise faster. How about threatening to withdraw Help to Buy to make people panic and take it out before it disappears when really having no intention of withdrawing it? That should add a bit of extra fuel to the fire.

HTB 1 goes until 2020.

HTB 2 until 2016.

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Weren't they also constantly 'ready to act' to keep inflation at 2% and permanently surprised that they failed to hit their targets?

I feel a fan-chart dance coming on ...

tumblr_lkhxexZFy51qa70eyo1_500.jpg

lovely!

Edited by okaycuckoo

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Good cop / bad cop.

Osborne writes subsidy cheques then washes his hands of all responsibility by instructing BoE to sort it out.

BoE tell Chancellor they can't sort it out for cash buyers in London which is what's (mostly) skewing national average prices.

Chancellor reminds the media it's not his problem.

What a shower of useless public schoolboy w*nkers these clowns are.

You didn't go to a Grammar School by any chance :rolleyes:.

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HTB 1 goes until 2020.

HTB 2 until 2016.

HtB1 helped make just 19394 legal completions in the year April 1, 2013 to March 31, 2014. It's being extended to 2020 because Osborne knows it will cost next-to-nothing to do so - the uptake has been so poor.

HtB2 was intended primarily to goose prices in London and the South East in the run-up to the GE. A majority of mortgage brokers believe it will be withdrawn completely (like FLS) or modified substantially before 2016.

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HtB1 helped make just 19394 legal completions in the year April 1, 2013 to March 31, 2014. It's being extended to 2020 because Osborne knows it will cost next-to-nothing to do so - the uptake has been so poor.

HtB2 was intended primarily to goose prices in London and the South East in the run-up to the GE. A majority of mortgage brokers believe it will be withdrawn completely (like FLS) or modified substantially before 2016.

That "next to nothing" cost has dropped £791,000,000 in the back pockets of the house builders. Nice work if you can get it.

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