A Framework That Provides Clarity

During periods of “low visibility,” confusion reigns: for every indication of one trend, there seems to be a countertrend. The key is to glean from the collective wisdom of reliable leading indicators a clear signal that the economy is headed for a turn.

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Jun 13 2014

Are the BoE's Housing Fears Overblown?

Following a dramatic downturn, U.K. real home prices have risen substantially, as correctly anticipated by ECRI’s U.K. Leading Home Price Index (UKLHPI). Accordingly, British homeowners are optimistic about further increases in the value of their homes. However, Bank of England Governor Mark Carney has cited the housing market as the biggest domestic risk to the economy, with rising prices forcing buyers to take on more debt. Similarly, the OECD has warned that the British housing market is in danger of overheating, and the IMF has also expressed some concern. Are these fears warranted?

ECRI’s latest update to the UKLHPI provides an answer to this question, revealing a clear trajectory for U.K. real home price growth in the months ahead.

Related News & Events

Eurozone Inflation Pressures Remain Muted

Reuters June 6, 2014

Inflation pressures remain muted, according to the Eurozone Future Inflation Gauge, published a day after interest rate cuts and other monetary easing by the ECB. More