While debate rages on whether or not Britain is heading into a new housing bubble, here’s a Reuters poll from 1999 that asked the same question. The answer then was, ”No, this time is different”, and it featured a lot of the same arguments we’re hearing today.
Here it is, posted in full:
POLL-UK property recovery not a 1980s bubble
By Penny MacRae
LONDON, Aug 18 (Reuters) – Is Britain seeing a rerun of the 1980s property boom?
Here’s some of the top reasons from a 1999 Reuters poll on why a housing bubble wouldn’t form, which are re-appearing 14 years later.
The Bank of England will stop a bubble forming
2013: “If there’s another bubble, the Bank of England and the Government of course have means by which we can anticipate that and ensure that that doesn’t happen again.” – Danny Alexander, chief secretary to the UK Treasury.
1999 Reuters poll: ”Economists and property specialists say the Bank of England won’t let another inflationary boom happen. The Bank has already said it will monitor house prices closely. ‘It’s unlikely to become inflationary unless the monetary policy stance becomes too loose and that’s highly unlikely,’ said economist Trevor Williams of Lloyds Bank TSB.”
Even a government shutdown and the prospect of an unprecedented U.S. government default – no matter how small – couldn’t shake the conviction among equity analysts that stock markets only have further to rise.
Published on Tuesday, the latest Reuters poll collected more than 450 points of data from hundreds of analysts worldwide on how 20 of the world’s biggest stock markets will perform from now until the end of the year.