Bank of England governor Mark Carney fires warning as house prices rise 8.9% year on year
Britain鈥檚 booming housing market represents the 鈥渂iggest risk鈥� to the economic recovery, Bank of England governor Mark Carney has warned.
Carney said he was concerned about the dangers of a 鈥渂ig debt overhang鈥� building up as approvals for large mortgages increase, in an interview with Sky 好色先生TV鈥檚 Murnaghan show yesterday.
He said the Bank was monitoring the situation but there was little it could do about the 鈥渄eep, deep structure problems鈥� in the housing market, with demand outstripping supply.
Carney noted that in his native Canada there were half as many people as in the UK, yet twice as many houses are built every year.
Property website Rightmove said this morning that house prices climbed at their fastest rate for more than six years in May, rising 8.9% year on year.
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