Even those who are adamant Britain won’t succumb to another runaway rise in house prices ought to know one thing.
The arguments against the existence of a new housing bubble are identical to those that crumbled during the last one, in the decade leading up to 2008.
A 1999 Reuters poll which asked “Is Britain seeing a rerun of the 1980s property boom?” shows how.
Here’s some of the top reasons from 1999 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.”