The U.K. is in “hysteria” about housing and concern that a bubble is brewing in the property market is overdone, according to the EY Item Club.
The U.K. is in “hysteria” about housing and concern that a bubble is brewing in the property market is overdone, the EY Item Club will say.
The U.K. economy won’t grow this year as damage from the euro-area debt crisis overshadows a pickup in consumer spending in the second half, the Ernst & Young Item Club said.
U.K. home sellers raised asking prices for a seventh month to a record in July, according to Rightmove Plc, which said values will increase twice as much as previously forecast this year.
Britain’s economy will grow less than previously forecast this year and further bond purchases by the Bank of England may do little to stimulate the recovery, according to the Ernst & Young Item Club.
Ernst & Young LLP’s ITEM Club cut its U.K. growth forecast and said the Bank of England should lower its key interest rate as its new stimulus earlier this month is unlikely to be enough to revive economic growth.
Britain’s economy will grow faster this year than previously forecast as consumers cut into savings to keep spending, according to the Ernst & Young Item Club.
U.K. Prime Minister David Cameron ’s welfare cuts may save 90,000 public-sector jobs by easing the pressure on government departments, according to Ernst & Young LLP’s Item Club.
U.K. home sellers raised asking prices in April for a fourth consecutive month amid a shortage of properties for sale, according to Rightmove Plc.
"Despite the recent criticism of these initiatives, the chances of seeing another housing-market bubble are extremely slim."
- Peter Spencer on Oct 12, 2013