Housing will drive growth

15th November 2013

The Governor of the Bank of England, Mark Carney, has said that the housing market recovery will help spur economic growth in the coming months because rising house prices tend to go with an increase in consumer spending.

He explained that a stronger mortgage market was usually linked with easier credit conditions and higher income expectations. Mr Carney also downplayed fears of a housing bubble commenting that a pick-up in housing was "initially an important part of the recovery". However, he added that the Bank was "vigilant" to the threat of a house price bubble and that there was a "broad range of tools" to deal with surging prices.

Source:    Financial Times