UK House Prices Still A Concern

Mark Carney, the governor of the Bank of England said that he is concerned that the UK housing market is heading towards another bubble which could pop causing more economic problems. Mr Carney stated that house prices in the UK are rising too fast and that the Central Bank are concerned about prices rising out of control. At the same time it has been confirmed that while house prices are rising levels of borrowing are also increasing at a fast pace and recent history has shown us that when too many people strech themselves too far to avoid inflated property prices it can lead to major economic problems and people living in houses with negative equity. So, Carney’s words are sparking speculation as to how the Bank will try to curb this fast growth. The Bank could tighten credit making it more difficult to borrow money for mortgages, alternatively they could try and encourage the Government to cancel its help to buy scheme to try and slow down the number of people buying property therefore curbing the rising prices.

Any course of action to try and slow the housing market is likely to be seen as negative and so could weaken Sterling exchange rates so as this story runs it could be vital for anyone looking to transfer foreign currency. So, if you need to make a currency transfer and would like to be kept informed of all the latest currency movement speak with one of our friendly and helpful currency brokers today on 0800 328 5884 or alternatively email me directly on trh@currencies.co.uk. We can discuss your currency requirements, the market outlook and all the different options available to you in order to help you make an informed decision as to when best to transfer your funds internationally.