​UK housing market not out of control, says BoE official

December 23, 2013 - 4:01:29 am

LONDON: The Bank of England is watching Britain’s fast-rising housing market closely and has the tools to take the heat out of it if it gets out of control, the central bank’s Deputy Governor Andrew Bailey said in a newspaper interview published yesterday.

The central bank was pleased Britain’s economy was showing signs of sustained growth, but policymakers had to make sure the recovery did not rely too much on property and related consumption, he told the Sunday Telegraph.    

“We are very focused on the housing market,” Bailey said. “We don’t think that at this stage the situation is out of control. We have laid out the tools that we can use. The thing I stress is that we will use those tools.” Keeping rising property prices under control without holding back the rest of the economy is one of the biggest challenges facing the Bank of England.

“We have to be very careful about the balance of growth. It is very much dominated by the housing market and the consumption that is attached to that,” he said. “Our job now of course it to ensure that recovery is sustained and it is sustained in a way that does not become imbalanced and stack up problems for the future.”

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