Well that’s a shocker.
Mark Carney’s revelation at Mansion House will serve to make homeowners even more vulnerable than they have already been over the last five years.
Furthermore, George Osborne plans to allow the Bank of England to limit loans that could undermine the financial stability of the UK housing market.
This follows the draconian rules already implemented by city regulators with stricter affordability tests.
Mr Osborne said,
“I want to protect those who own homes, protect those who aspire to own a home, and protect the millions who suffer when boom turns to bust.”
Whilst the speeches in Mansion House aim to prove that the government is taking charge and all is in control, it does erase the reality that the average layperson is still bearing the brunt of the economic burden.
A nation of crippling negative equity certainly does not make for a good after dinner speech.
The reality is, the present UK generation is one that is caught between huge childcare costs, negative equity and falling incomes. And now the monthly mortgage bill is due to rise.
It’s a glum forecast leading to a downwards trajectory.