PROPERTY PANIC: House prices rise by £10,000 in the last month
Bank of England Guv’nor Mark Carney is considering putting caps on mortgages to dampen the too-hot property market before the whole thing melts like a Fab lolly on a sunlounger.
That’s after news from Rightmove that property prices have risen in the last month by a ludicrous £10,000, inflating the price of the average home to record high of wait for it… £272 And if it continues, the whole thing is going to explode in a big sticky mess of economic doom.
Of course, in reality most properties aren't worth nearly as much as that. It’s London, of course, that is skewing the figures in this ludicrous fashion. In the capital asking prices have gone up by £80,000 in 2014, whereas in the rest of the UK the rise has been a much less terrifying 4.9%.
But the Bank of England has warned that people may be forbidden to take out a mortgage worth many times more than their earnings. They want to introduce ‘affordability tests’ and are looking into whether the government’s Help to Buy scheme is fuelling the fire.
Carney said: ‘We could limit amounts of certain types of mortgages that banks could undertake, we could provide advice - the Chancellor has asked us if we would provide advice on changing the terms of Help to Buy - all those things are possibilities and we will consider them all.’
How about limiting the actions of the oligarchs and the billionaire property prospectors who’ve been allowed to snap up luxury flats in London and create the bubble in the first place?
Nah. Just punish young people who want to buy their first home instead.
THANKS AGAIN, RICH GUYS!