House prices increased again across the UK in April, taking them some 9.9 per cent higher in the month than during the same time last year and making the typical price of a home \u00a3260,000, 10 times the average salary.<\/p>\n
According to the Office for National Statistics (ONS), the rise in prices was fairly widespread but London is still romping ahead of the rest of the country, with prices there 14 times higher than the average salary and rising by 18.7 per cent year-on-year.<\/p>\n
However, even taking London and the South East, where houses are 11 times the average salary, out of the equation, prices are still out of the reach of ordinary working people, at slightly over six times the average take-home pay.<\/p>\n
There have been fears that rampant rises in house prices could lead to another housing bubble but Chancellor George Osborne has recently announced plans to give the Bank of England the power to impose a cap on home loans related to income or the value of a home.<\/p>\n
The Bank can advise on such a cap at the moment but cannot impose it. However, the new power is expected to be in place before the end of this Parliament in 2015.<\/p>\n
Only last week, the Bank\u2019s Deputy Governor called the housing boom the main risk to the stability of the UK\u2019s economy but some commentators believe that the Government should not intervene and should let the housing market \u201ccool of its own accord\u201d.<\/p>\n
It will be interesting to see what the Bank\u2019s Financial Policy Committee (FPC) decides to do about the situation when it publishes its financial stability report on June 26.<\/p>\n","protected":false},"excerpt":{"rendered":"
House prices increased again across the UK in April, taking them some 9.9 per cent higher in the month than during the same time last year and making the typical price of a home \u00a3260,000, 10 times the average salary.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/288"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=288"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/288\/revisions"}],"predecessor-version":[{"id":289,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/288\/revisions\/289"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}