says Bank of England deputy Cunliffe

  • Fellow Bank official Andy Haldane says raising rates would be 'last defence' against housing bubble



House prices rising faster than incomes pose the 'biggest risk' to the UK economy, according to the Bank of England, which has said raising interest rates would be the 'last line of defence' against a housing bubble. The BoE's deputy governor, Jon Cunliffe, said huge pressure would be heaved onto homeowners and the economy as a whole if house price rises continued to outstrip incomes. Concerns over a house price bubble are growing, with the latest figures from Nationwide finding that average prices hit a record £188,903 in June, a rise of almost 12 per cent across the UK - house prices were up 26 per cent in London......Read more here