Economic Indicators 

Targeting house prices

Chris Dillow

Chris Dillow
Targeting house prices

Is the era of house price inflation over for good? I ask because the Labour party is considering giving the Bank of England responsibility for limiting house price inflation, by restricting mortgages if prices look like rising too much. Grace Blakeley, whose report for the Institute for Public Policy Research (IPPR) think-tank inspired the idea, has proposed a target of zero price increases for five years followed by 2 per cent a year. This would mean that prices don’t rise in real terms.

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