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11 Reasons The Bank Of England's 'No Housing Bubble' Call May Be Wrong

11 Reasons The Bank Of England May Be Ignoring A Housing Bubble
Asa Bennett
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Governor of the Bank of England Mark Carney during a news conference to present the UK Quarterly Inflation Report, in central London where he upgraded the UK growth forecast for next year and said the Bank expects unemployment to fall more quickly than previously thought.
Lefteris Pitarakis/WPA-Rota

Britain is not seeing another house market bubble, according to Bank of England policymaker Ben Broadbent.

Broadbent, who is soon to be deputy governor for monetary policy, told the Today programme that he did not see worrying levels of credit growth.

"What really matters I think, certainly for financial stability... is not so much house prices per se, but whether they’re accompanied by rapid growth in credit. That’s not happening at the moment, but it’s clearly something that the Bank and the Financial Policy Committee in particular will want to keep an eye on,” he said.

However, a chorus of voices have called for the Bank to act to head off a steadily heating housing market, while Mark Carney this week stood firm on plans to only raise interest rates next spring.

Green Party leader Natalie Bennett wrote in a HuffPostUK blog: "Even estate agents are now expressing fears about the housing price bubble, particularly in London. Though deliberately fuelled by the Coalition's 'Help to Buy' scheme, the bubble is a threat to the whole future of our precariously situated economy."

Property bubble fears have been sparked by the UK's ever-soaring house prices, as they rose by 10% in the 12 months to April. Is Broadbent right not to worry?

HuffPostUK presents 11 awkward facts suggesting Broadbent may be wrong to say there is no housing bubble brewing.

11 Reasons May Be In A Housing Bubble
And even world snooker champions...(01 of10)
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Ronnie O'Sullivan says a huge housing bubble (and crash) will happen.Or in his words: "Baby it's coming."
Central London house prices are rising £729 per day(02 of10)
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The average price for a three-bedroom house in central London has increased by £729 a day over the last year, equivalent to a quarter of a million pounds, estate agency Marsh & Parsons said.The estate agent firm said the scale of house price inflation meant that prices rose by 19% since April 2013 to an average of £1.6 million, equivalent to £5,120 a week, or eight times Londoners' £658-a-week median salary.
Single people can't seem to afford to own a property (03 of10)
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Less than one in ten properties in many parts of the UK are affordable to single house-buyers, according to the homeless charity Shelter. Meanwhile, three central London areas are completely unaffordable for couples with children or single people living on average wages: Kensington and Chelsea, Westminster and Camden
This garage was sold for £251,000(04 of10)
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It's JUST a garage.
And this tiny Chelsea lawn went for over 80 grand(05 of10)
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This tiny lawn in Chelsea sold this month for £84,000, and it doesn't have planning permission or right of way.
This garden looks a bargain by comparison(06 of10)
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It sold for £53,000 last September - and you can't do anything on it at all
You'll only need save for 30 years to buy a home...(07 of10)
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So says independent research commissioned by Shelter .That boy has already started on his first house...
You might as well move here(08 of10)
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It's cheaper to commute from Spain than to live in London.
Other Bank of England chiefs are worried...(09 of10)
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Sir Jon Cunliffe, the Bank's deputy governor for financial stability, has warned that it would be "dangerous to ignore the momentum that has built up in the UK housing market."He also said that the housing market was the "brightest light" blinking on the dashboard of financial hazards that the Bank monitors.
Broadbent himself admits he may be wrong(10 of10)
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While arguing that Britain is not showing signs of a housing bubble, Broadbent admitted that it may be easier to spot with hindsight. “Bubbles are things that are things that are far easier to identify after the event than at the time," Broadbent told Radio 4's Today programme. (credit:Reuters )
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