A new report by the Royal Institution of Chartered Surveyors has called on the Bank of England to restrict the UK’s housing market, to “take the froth out” of yet another property boom.
Nima Green looks into the implications for VoR.
Across some parts of the UK, there seem to be tentative signs that the housing market is picking up.
While this is good news for sellers, some experts are worried that the country’s fragile economic recovery could be derailed by yet another property bubble.
The Royal Institution of Chartered Surveyors, or RICS, is calling on the Bank of England to consider capping annual house price inflation at 5% per year to prevent this.
The RICS also suggest that the amount that people can borrow is restricted in relation to the size of their deposit or income – meaning many will need to pay more money up front for deposits.
This would be the last thing struggling first time buyers need, particularly those on low to middle incomes, something that the RICS readily acknowledges.