The housing market boom will not end in a crash, according to Sir Eddie George.
George, who stepped down as governor of the Bank of England (BoE) on 30 June, made his final comments on the outlook for the housing market during his last week in office, after holding the top position for ten years.
George dismissed the fears of some commentators who pointed to house price falls in some areas as the precursor of a housing market collapse, and claimed the moderation in price rises he has long campaigned for is now a reality, ushering in a period of greater stability.
During his decade in charge George presided over the historic decision to let the BoE set UK interest rates, which he saw cut from 5.8% to 3.75%, something which has been credited as key to the huge house price rises of the last few years. However, he always kept a close eye on the growth of the housing market and has long been a proponent of reining in its growth.
George is wary of the Treasury’s proposals for long-term mortgages and said that it is a decision that borrowers should be allowed to make for themselves.