LONDON (Reuters) - Nationwide’s chief executive said the impact of the government’s ‘help to buy’ housing stimulus programme on property prices in London and the south east of England must be monitored closely to prevent a house price ‘bubble’.
“If you look at some of the metrics where you compare the house price with the earnings of individuals it’s clearly increasing. It’s something that needs to be watched very carefully but at the moment we are not expecting to see anything dramatic happening in the housing market,” Graham Beale told Reuters in an interview.
Nationwide is Britain’s third biggest mortgage lender.
Reporting by Matt Scuffham; Editing by Steve Slater