UK Central Bank Survey Shows Housing Concerns

A correction in British housing prices was the fastest-growing risk cited by financial firms in a survey published by the Bank of England on Monday.

The biannual survey of economic concerns among banks, building societies, insurers and asset managers said the impact of low-interest rates on house prices had risen sharply as an area of concern since the May survey.

“Perceived risk around property prices … rose, being mentioned by 36% of respondents, up 11 percentage points since the previous survey,” the Bank of England said.

“Concerns were concentrated almost exclusively on the residential market, where responses focused on the risk of a house price correction.”

The Bank feeds the survey into its financial stability work and so far has said it sees no general housing price bubble in the making.

On Monday, the property website Rightmove said fears that Britain’s housing stimulus schemes are inflating a property bubble look overblown.

via The Guardian

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