MPC Member Predicts House Price Recovery

Interesting Q&A with MPC member Kate Barker over at the Spectator on why the housing market and the economy hit the skids.

Barker, who did a review of housing supply for the government, makes some pretty strong statements, among them that the target for housebuilding may now be defunct due to demographic changes and that the MPC shouldn’t have been set up to focus so narrowly on inflation.

She also predicts that house prices will pick up as lenders become more liberal about how much they will lend:

“The big slide down to 75-80 per cent [loan to value requirement] may be overdone. So I would expect the mortgage market to move. I expect house prices to move up again.”

The full text is at The Spectator.

 Loading ...

• What Do You Want It To Equal? (0)
• House Prices To Fall By 70 Per Cent Peak-To-Trough? (0)
• Are We Over The Worst (Or Am I Losing It)? (5)