Sorry, the Bank of England can't do anything about the housing bubble
Would you believe it – the Bank of England says it has ‘no power’ over the massive property bubble at the higher end of the housing market, bringing a return to outrageous prices in London.
Speaking on the Andrew Marr show, Mark Carney, the guv’nor, played down the idea that there actually WAS any bubble, and mumbled something positive about recovery and the Help to Buy scheme.
Carney explained that as massively rich people were buying properties in London with cash, there was little it could do but ‘watch’ as prices soared.
‘It's driven in many cases by foreign buyers’ he said. ‘We as the central bank can't influence that. We change underwriting standards - it doesn't matter, there's not a mortgage. We change interest rates - it doesn't matter, there's not a mortgage, etc. But we watch and we watch the knock-on effect.’
This comes as the most expensive property in London went on the market last week in Mayfair, a 21 bedroom mansion priced at £90m.
So soon we’ll all be living in ditches, priced out of the market, while the oligarchs fiddle around in their home cinemas and underground swimming pools. But you know, everyone’s hands are tied – sorry!
Still, while all that lovely foreign money rolls right in, the Tories would be delighted to give all you ‘hardworking families’ a 95% mortgage on a terraced hovel in Rotherham. Will that do?