Monday, 9 December 2013

Osborne Challenged Over Housing Bubble Denial

George Osborne has flatly denied that a housing bubble is forming, only to be contradicted hours later by one of his Tory predecessors. The current chancellor promised that any big rises in house prices would be curbed, and the UK would have a "responsible recovery". He said there is "not a housing bubble at the moment". However, Lord Lamont, a chancellor under Sir John Major, promptly offered the opposite view, suggesting there is a danger that the housing market is overheated – a situation that could be worsened by the Treasury's Help to Buy scheme. "There's been a huge fall-off in mortgage applications and turnover in the housing market and at the same time, in the south, you have a much faster rise in prices, while in the north some areas prices have fallen 40%. So it's a very, very difficult judgment to make.” Read more on the Guardian website.

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