"The autumn market is set to heat up as the weather cools down following the summer lull in fresh property supply. While prices fell during the month overall, the last couple of weeks have seen the start of a turnaround."
- Miles Shipside, Rightmove director and housing market analyst
In order to stoke the fire about growing housing bubble in the U.K., Rightmove, the nation's leading property portal, published its house-price growth forecast, saying investors should prepare for another rally. Even though, values tumbled 1.5% in August due to the lower number of sellers postponing business until the end of summer, the company now expects prices to soar 6% instead of the 4% growth estimated earlier. Businesses are widely expected to pick up sharply soon supported by a combination of steadily improving demand for property and growing shortage of new property stock. Earlier this month, the world's leading property company stressed out the Bank of England should limit annual house price inflation to 5% to avoid another bubble. Despite growing concerns, these figures also mean two major credit-easing schemes introduced by the government are spreading across the economy. Another sign of improving property market is the number of mortgages approved in July, which showed the indicator reached the highest since March 2008.
Also Monday Deputy Prime Minister Nick Clegg in attempt to calm down markets said there is approaching house-price bubble and assured the BoE has all necessary tools to prevent it. On September 18 the BoE's Financial Policy Committee is gathering to scrutinize potential financial-stability concerns, just couple of days after Mark Carney defended his forward guidance and was questioned about the risk of an unsustainable housing-market boom.
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