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There are better ways to curb house price inflation than bans on foreign buyers.
"The rising level of house prices in relation to earnings should, however, curb house price growth and activity".
Last week the chancellor, George Osborne, gave the committee new powers to curb house price rises, which have been flagged as a threat to Britain's economic recovery by ratings agency Fitch and the International Monetary Fund.
Dream come true, page 3: Leader comment, page 16 Larry Elliott, Will Hutton, page 17 Rate rise 'will curb house boom', and Notebook, page 18 The governor, his deputy and the man most likely to succeed EDDIE GEORGE: governor of the Bank of England Respected by the financial markets for his cool head, chain-smoking Mr George has earned the nickname 'steady Eddie' and will be difficult to dislodge.
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There is talk, naturally, of a bubble.It is not just Sweden: in June the IMF called on policymakers to do more to curb housing prices around the world, pointing out that valuations looked high in many countries (see article).
Smith said the disparity between average weekly earnings and average weekly housing costs had increased markedly in the past 15 years, due to the "inexorable trend of housing prices," and said reforms to negative gearing and capital gains tax were desperately needed to curb housing costs.
This is geared to curbing house price inflation, in a region dominated by service industries, with little or no unemployment and a labour shortage, at the expense of the north dependent on manufacturing - and hence vulnerable to higher interest rates - where there is a jobs shortage.
OF ALL the welfare cuts announced by the coalition government, those curbing housing benefit have so far excited the most controversy.
Besides tightening monetary policy, Mr. Wen said, the government will hold local officials more strictly accountable for curbing housing prices and food prices.
"The prospect of higher interest rates at some point in the year and reduced affordability are expected to be key factors curbing housing demand.
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