The governor of the Bank of England has admitted it is powerless to control the soaring prices of prime property in London.
Mark Carney played down fears of a bubble in the wider market, dismissing suggestions that the coalition's Help to Buy scheme was having a significant effect. But he made clear that when it came to the boom in the most desirable areas of the capital – which many blame for stoking prices elsewhere – the Bank could do little more than watch.
The government could see as much £4.3tn written off the value of properties in high flood-risk areas unless it rethinks the way insurance and mortgages are going to be provided for such vulnerable areas.
The warning came as peers urged the government to revise plans to exclude up to 5m households from its proposals to provide subsidised insurance to households in areas of high flood risk.
Wealthy foreign buyers' desire for high-end London property is creating a real risk of a housing bubble in the capital, a highly-regarded group of economic forecasters has warned as it calls for measures to cool down the market.
In a special report published on Monday into the impact of rising house prices, the EY Item Club said the influx of super wealthy buyers has created bubble-like conditions in London.
Latest figures from Solicitor Property Centres Scotland show a 36% rise on house sales in the final quarter of 2013 compared with the previous year.
The average house price between October and December 2013 also rose to £179,223 - an increase of 4.8%.
Prime Minister David Cameron has moved to allay fears that the government’s flagship Help to Buy scheme is risking a potential ‘housing bubble’ in the market, branding the scheme as a ‘complete success’.
Mr Cameron praised the impact the scheme has had in such a short space of time, and highlighted that over 700 houses had been purchased and another 6,000 were experiencing some form of market interest since it began earlier last year.
Bank of England governor says rising market not a threat as surveyors' group predicts rises could become unsustainable
The number of homes sold per chartered surveyor reached its highest point since March 2008 last month as the recovery in the nation's property sector continued full steam ahead, says December's RICS Residential Market Survey.
Over three quarters of Scottish regions see price rises in November.
Richard Sexton, director of e.surv chartered surveyors, part of LSL Property Services, comments:
“The property market in Scotland is powering on ahead like a freight train. Price rises of £2,146 in November reflect the largest increase in a single month, since June 2007 when prices were up b...
London and the south-east drive average annual growth to 5.3%, official figures show, with first-time buyers paying 6.4% more than in 2012
Latest data from Knight Frank reveals that prime country house prices are set to continue increasing through 2014 after rising again during the final quarter of 2013. The average price of a prime country house in England increased by 1.4% in the final quarter of 2013 – the biggest quarterly increase...
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