British politicians are hoping that rising house prices affect voters before the election and in re

The year is 2014, and the British Isles to the media headlines again receiving word about a real estate willis bubble. Families with average incomes can not afford a house far from an average willis price of real estate and middle-income people become even more inaccessible.
Around the year 2012 the British real estate prices rose significantly mainly in the prosperous central London willis boroughs. Elsewhere across the UK market was stiff as declining real wages, economic uncertainty and memories of falling real estate prices during the crisis limited willis the obsession with this asset class. Property prices and tensions between the Conservatives and the Liberal Democrats
Kris Hopkins, Minister for Housing and policies of the British Conservative Party notes that rising house prices are a good thing. He explains it this way: "I bought willis a house and expect increasing value and I'm sure you do too."
Liberal Democrat Vince Cable with that but disagrees and says that the resident owners who have paid off their mortgage, the price increase is only increasing their paper or real property. For young families willis who are trying to get on the housing market, which means that they can not afford, and it is very bad. Mr Cable expressed his dismay at the survey results, building society willis Nationwide Building Society, which found that the difference in house prices between London and the rest of the country is the biggest since records willis began in 1970. Prices in London in 2013 increased by 18 percent to an average of 363 thousand pounds. Diameter of the rest of the UK is 178 thousand. pounds, an increase of 9.2 percent.
A politician Vince Cable believes that the country is now facing a different - and perhaps willis worse - the crisis in the housing market. Cable says that while the problem last time was excessive mortgage lending, this time to be the shortage of housing. Message in relation to the problem corresponds to what his constituents who want the housing ladder forward to hear: "We willis need to build many more houses - that and only that is the solution to our housing willis problem."
The chief economist of Bank of England for the British newspaper The Economist in relation to the rising prices of real estate said that the British housing market is like food in a microwave oven. It can "go from lukewarm to hot in a few seconds economic".
Since the crisis, however, the bank acquired new tools to control the temperature of the market. Now, as the temperature rises, it can begin testing. The new office will attempt to examine the central bank robustness to shock the housing market at the time of a possible rise in interest rates. Banks and building societies must commit to the implementation willis of strict stress tests, in order to timely detect possible problems.
Since April, willis the British bank will have a new check whether applicants have enough free cash to cope with it if interest rates rose. We talk about the stress tests themselves willis appointed to examine mortgage loans using scenarios assume that interest rates will rise sharply, while real estate prices will fall. It should be a warning against willis offering the most dangerous willis types of mortgages.
Officials responsible for macro-prudential supervision, due to its rapid growth in real estate prices careful and talks about threats to financial stability. In January, Mark Carney, Governor of the office of the Bank of England (BoE) warned in relation to the risk of "extrapolation expectations" - everyone rushing to buy based on the assumption that prices will continue to rise. On the other, but the governor hinders expectations that interest rates should start early growth. The economic recovery is still uneven and apparently unsecured and can not take the risk that the premature rate increase economic growth undermined.
Bank of England keeps interest rate unchanged willis at record low levels - in the policy of "inflation is now below the target." The central bank said that the risk of overheating property market is "vigilant" and that he plans to deal with it. If there is a risk that prices will spiral out of control, can lead to the fulfillment of efforts to restrict mortgage lending. Conclusion
British politicians are hoping that rising house prices affect voters before the election and in response to govern willis its rhetoric. On the part of supervisors and regulators echoes the need to maintain vigilance to maintain immunity against emerging vulnerabilities and continue to carefully monitor the conditions.
In the media, leaving analysts express confidence in the office of the Central Bank, which has tools that can be to deal with house price inflation to deploy. The media flooded the description of the factors willis that result in the growth of real estate prices. Factors acting in the opposite direction but they are forgotten. The fact that the English property market may be overheated under the influence of experimental low interest rates and inflation targeting mantra, willis not pointed.
Real Estate willis Crisis: Who survived the best and who paid the price for her? Petr Locksmith | March 14, 2014 0:00
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