View more on these topics

MPC admits to being uncertain about future

At a speech at Bloomberg London, MPC member Stephen Nickell admitted that he found the housing market difficult to predict, with the available data sending out mixed messages.

He says: “The analysis indicates that there is a significant probability that house prices will fall at some stage, though we cannot of course know by how much. Equally, it is also quite possible that house prices will not fall at all. This is simply a reflection of the uncertainty noted above.

“The evidence suggests that house price inflation is significantly related to household consumption growth and hence to aggregate demand growth and future consumer price inflation in the economy.

“As a consequence, prospects for house price inflation will play a significant direct role in monetary policy aimed at general inflation in the economy despite the fact that house prices are not included in the consumer price Index.

“By contrast, the fact that household debt accumulation appears not to be closely related to household consumption growth indicates that it will not have a direct impact on monetary policy. However, it may have some small indirect impact if, for example, high levels of debt make the response of the economy to interest rate changes more uncertain.”

Recommended

CMLS receives full authorisation from FSA

CMLS director Tony Salentino says: “We are delighted to be one of the first networks to obtain full FSA authorisation and we believe this reflects the strength of our network offer and the high quality support that our ARs will enjoy. This is a great achievement for the business and recognition is due to our […]

Lifelink Services receives full FSA authorisation

Director Steve Field says: “Everyone at Lifelink is delighted that we have received our part IV permission. Special thanks go to the compliance team and everyone else in the business who has worked so hard to achieve this major step forward.” Lifelink Services is the network arm of the Lifelink Group which also includes mortgage […]

Genesis solves AR dilemma

FSA regulations stipulate that a broker calling themselves independent must offer clients a whole of market product range and the option to pay a fee for the service provided. Where the client opts to pay a fee the gross procuration fee payable from the lender to the network has to be rebated to the client. […]

TBMC receives authorisation from FSA

Ian Wheadon, TBMC director, says: “whilst buy-to-let and commercial mortgages remain predominantly outside of the regulatory parameters, we wanted to ensure that we were in total control of our advertising and marketing activity with reference to MCOB3. “We also wanted to be in a position to cover every eventuality within our specialist market sector to […]

Newsletter

News and expert analysis straight to your inbox

Sign up