Talk of a Canadian housing bubble seems never-ending but in the U.K. it’s never far from the thoughts of Realtors, economists and homeowners. Canada’s banking export, Mark Carney is under pressure at the Bank of England to do whatever he can to avoid the kind of property crash that would see the U.K. economy badly fractured.
There are, of course, differences between our housing market and theirs; construction there is low compared to here; but high prices and low mortgage rates are certainly a huge factor for both countries.
This week Mr Carney announced caps on the percentage of mortgages that a lender can issue to those borrowing more than 4.5 times their income. Economists say this measure if too weak.
There are already suggestions that this income to mortgage ratio may be adjusted. The Bank of England is keen to avoid an interest rate rise too soon for fear of damaging the wider economy.
