LONDON (Reuters) - Britain’s housing market is not showing signs of being in a price bubble at the moment but policymakers “should be nervous” about the pace of the recovery, the Bank of England’s outgoing chief economist Spencer Dale said on Wednesday.
Dale, speaking to members of parliament, said the increasing share of mortgages at high loan-to-income ratios pointed to increasing momentum in housing market.
“We know we should be nervous about what’s going on in the housing market,” he added.
Dale is due to step down as the BoE’s chief economist in June to take up a post at the Bank in charge of overseeing potential risks to the economy from the banking sector.
Reporting by David Milliken and Huw Jones; writing by William Schomberg