The government is back in the mortgage underwriting business, in a move that sees Rishi Sunak use a taxpayer-funded helicopter to spray gasoline on the currently burning wildfire.
The market was booming before this latest intervention, which sees the state underwriting 95% of mortgages for homes worth up to £ 600,000. Rightmove, for example, recently reported a 2.1% rise in asking prices month over month, taking them to a record £ 327,797. The annual increase was 5.1%.
This is what happens when a shortage of supply meets high demand, the first lesson your child will learn when they start taking economics classes, but something that Mr. Sunak, a former banker, seems to have forgotten.
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This notice was published: 2021-04-19 20:30:02