“As Mark Carney takes his seat at the Bank of England this morning, he will quickly see that he is inheriting a housing market whose life signs are growing stronger by the month despite underlying structural weaknesses. Property values are on the rise and mortgage lending is shifting into a higher gear, with over 5,000 more loans approved in May compared with April and almost £1bn extra lending to house buyers and homeowners.
“One of his biggest challenges will be overseeing a market where the supply response is still very limited and where demand is being stimulated by a range of government and Bank of England interventions. His Canadian heritage means he is well used to operating in a market where state backed mortgage guarantees have become a permanent feature since they first emerged in the 1950s and where there has been considerable price volatility.
“Everyone wants to see a UK property market that can ultimately stand on its own two feet. Mr Carney and the Bank will have a vital role to play in this and we would urge that with the changing of the guard at the Bank, the opportunity is seized to sit down with government and industry to map out the issues and a longer term vision of achieving a more stable and secure housing market.”