As house prices look set to continue rising during 2013, U.K. policymakers plan to address concerns of a housing bubble on Wednesday. But not everyone is happy about potential attempts to “dampen” a nascent housing recovery.
The Bank of England (BoE)’s Financial Policy Committee will discuss whether the combination of government schemes such as “Help to Buy” and the lack of housing supply are causing a new property bubble to form, and if and when the Bank should intervene. What is in no doubt is that house prices are increasing, however.
On Monday, online real estate portal Rightmove said it expected national house prices to rise by 6 percent in 2013, up from a previous forecast of 4 percent. It said the increase was due to the decline in new homes coming onto the market, with the number of new sellers dropping 9 percent in September from the previous month.
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