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"Bank of England Must Guarantee a Permanent House Price Boom, Says Rics"

Posted on the 13 September 2013 by Markwadsworth @Mark_Wadsworth
From the BBCThe Bank of England should use its powers to generate house price increases of at least 5% a year - more than double the normal inflation target and nearly double annual earnings growth - to "keep the froth in" price booms, a surveyors' group says.  The Royal Institution of Chartered Surveyors (Rics) said that a less than 5% annual rise should trigger an increases in caps on how much people could borrow relative to their incomes and a corresponding reduction in deposits required.  It is not suggesting that sellers should face a minimum price they can demand when selling their homes. The Bank said it was being vigilant and pointed out that their new Governor's record in stoking the Canadian house price boom spoke for itself.  Unearned gains in the UK housing market have picked up in recent months after a few years of flat lining during the financial crisis.  There has been considerable debate during the week about the future of the UK housing market and the limited potential for government schemes such as Help To Sell to create artificial price bubbles.

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