Bank explains UK housing bubble


A paper published this month by the Bank of England shows that changes in demographics, lower inflation and a lower long-run real interest rates may explain the build-up of debt and the rise in house prices in the UK between 1987 and 2006.

Figures show household debt and residential house prices in the United Kingdom both grew by more than 50% of income between 1987 and 2006, during which time the inflation rate fell to a low and stable level; long-run real interest rates fell both in the United

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: