Economy Carney Faces BoE Split Over When Best to Raise Interest Rates
Tue 20 May 2014
Nobel Laureates think we're in a housing bubble. Nobel Economics Laureate Robert Shiller thinks so, and he predicted the 2007 house price crash . And even world snooker champions... 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. 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 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. It's JUST a garage . And this tiny Chelsea lawn went for over 80 grand. 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 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... So says independent research commissioned by Shelter . That boy has already started on his first house... You might as well move here. It's cheaper to commute from Spain than to live in London. Other Bank of England chiefs are worried... 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. 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.