The housing boom could outlast the stamp duty holidays, Ban says …

The Deputy Governor of the Bank of England has said it is possible that the current boom in the housing market will continue even after the stamp duty holidays end in the fall.

Jon Cunliffe, in speaking to the Bar, said structural changes in the wake of the pandemic, such as increased homework, could keep demand high.

He says that if “one would expect the market to cool down when public support for the economy in general and the housing market in particular is withdrawn”, it is possible that “there could also be reasons. believe that the recent increase in demand for housing, and perhaps the composition of that demand, which has boosted the UK market in recent months, reflects some more persistent factors and the fact that the market will not return to its performance of the decade before the pandemic when tax incentives are gone.

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Earlier this month, a series of house price indices and forecasts estimated house price inflation at nearly 10%.

And Cunliffe adds that about 19 percent of renters can afford to save enough to afford a mortgage, even at 95 percent of loan-to-value.

If the sales boom continues or accelerates, he warns that the Bank’s Financial Policy Committee must step in – a cautious suggestion that could point to rising interest rates.

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