Bank of England Governor Mark Carney is edging closer to putting restraints on the U.K. housing market, and economists say that’s the right thing to do.
Chancellor of the Exchequer George Osborne promised the Bank of England new powers over mortgage lending to prevent the strengthening housing market derailing the recovery.
Mark Carney has given himself one month to decide on what to do about the hottest topic in the U.K. economy: the housing boom.
U.S. private-equity investors Wilbur Ross and J. Christopher Flowers, who’ve made billions of dollars turning around industries from steel mills to Japanese banks, are lining up to finance British homebuyers as the country’s biggest banks pull back.
The U.K. property market doesn’t pose a significant risk to the economy because low transactions will support prices, said Mike Amey, a fund manager at Pacific Investment Management Co.
Mortgages that helped fuel speculation during the U.K.’s housing boom by turning homeowners into aspiring property moguls are making a comeback.