Not our job to regulate house prices, says Bank of England policymaker

Not our job to regulate house prices, says Bank of England policymaker

Martin Taylor, an external member of the Bank’s Financial Policy Committee (FPC), said he was “astonished” by the Royal Institution of Chartered Surveyors’ suggestion last month that the FPC should cap house price inflation at an annual 5pc.

“I don’t think, personally, that it should be the FPC’s job to stop house prices going up,” Mr Taylor said at a business lunch in Wolverhampton on Monday.

“Add to that low official interest rates, and a Government scheme in Help to Buy 2 that – and, in isolation, this feels like quite a desirable objective – will give access to the market to those potential buyers who have enough income to service a mortgage but not enough capital to put down a deposit, and you certainly have some vigorous facilitation of demand.”

Mr Taylor maintained that his fellow FPC members on the committee, which is chaired by Bank Governor Mark Carney, “have our eye on developments”. However, he also voiced concerns that the expectations placed upon the FPC “are expanding so fast”.

It came as property website Rightmove said asking prices for homes in London jumped 10.2pc between early September and early October.

This was the biggest monthly jump since 2002.

Finance News – Business news from the UK and world


Uncategorized

Leave a Reply

Your email address will not be published.