‘Mark Carney, the Governor of the Bank of England, has told MPs on the Treasury Select Committee that he expects house prices to rise by about 10% over the next two years before the market slows down.
After 2016, the Bank expects prices to rise in line with earnings around 3% a year. “Our general expectation has been for a continuation of current house price momentum into 2014 before decelerating around the middle of 2015 towards 2016 towards growth more approximating the rate of growth of incomes,” Mr Carney said.
Mr Carney also attacked Britain’s “lamentable” record on building homes. Separately, Richard Sharp, a senior member of the Bank of England, warned that families should fix their mortgages to protect themselves against a “real risk of exposure to rising interest rates.”
He added: “Certainly, the structure of the UK would have lower risk associated with the housing market if more mortgages were fixed, and fixed for longer.”‘
Source: The Times, The Daily Telegraph, The Guardian, Daily Mail