Bank of England called to cap house price inflation over fears of 'dangerous' debt bubble
Ben ChuBritain’s leading chartered surveyors have made an unprecedented call for the Bank of England to put a cap on annual house price inflation in order to avoid a “dangerous” debt bubble.
The Royal Institution of Chartered Surveyors (RICS) argues in a report published today that the Bank should consider imposing a five per cent limit in annual average house price appreciation. If prices rise faster, RICS argues that the Bank’s Financial Policy Committee should use its new suite of regulatory powers to make mortgage lending scarcer and more expensive.
“The cap would send a clear and simple statement to the public and the banking sector, managing expectations as to how much future house prices are going to rise” said RICS’s senior economist Joshua Miller. “We believe firmly anchored house price expectations would limit excessive risk taking and, as a result, limit an unsustainable rise in debt”.
Pour citer cette ressource :
" Bank of England called to cap house price inflation over fears of 'dangerous' debt bubble", La Clé des Langues [en ligne], Lyon, ENS de LYON/DGESCO (ISSN 2107-7029), septembre 2013. Consulté le 06/12/2023. URL: https://cle.ens-lyon.fr/anglais/archives/archives-revue-de-presse/bank-of-england-called-to-cap-house-price-inflation-over-fears-of-dangerous-debt-bubble