There are more new home buyers in the UK just lately. And while that may seem like a positive. The Central Bank and its governor, Philip Lane do see cause for concern just beyond the primroses.
The new home buys have resulted in sales upwards of 1.5 billion. So, far so good. But, Central Bank, which pays close attention to the numbers each quarter, has observed that lending institutions, by and large, have narrowed the gap between monies allocated for funding a new home and actual disposable income. In short, less good. Add in the fact that property prices may plummet with the amount of new homes being built and you have a housing bubble and exploding and unsustainable credit growth. Financial crisis recipe, according to the bank.