Bank of England Watching Rising House Prices
The Bank of England will keep a close eye on the rising cost of houses in the country and says it can choose from a range of policy tools to employ if a price surge posed a risk to the financial system.
A number of recent housing indexes have suggested that prices are approaching pre-crisis highs, with London showing a particular resurgence. Nationwide confirmed in August that an average home was now worth £170,825 ($260,098), the highest since June 2008 when the average was £172,415. Meanwhile, property website Rightmove has predicted that prices are set to increase by 6 percent this year, from an initial estimate of 2 percent at the start of the year.
The figures have given rise to fears that a housing bubble is brewing.
A number of recent housing indexes have suggested that prices are approaching pre-crisis highs, with London showing a particular resurgence. Nationwide confirmed in August that an average home was now worth £170,825 ($260,098), the highest since June 2008 when the average was £172,415. Meanwhile, property website Rightmove has predicted that prices are set to increase by 6 percent this year, from an initial estimate of 2 percent at the start of the year.
The figures have given rise to fears that a housing bubble is brewing.
