UK risks new house price bubble - economists

Measures to increase confidence in the UK housing market could herald a new house price bubble, economists have warned.

Almost half of 29 experts polled by Reuters, including economists working for major banks and research institutions, put the chances of another sharp rise in prices at either likely or very likely. Seven of the 11 described the risk as 50-50. Respondents said the pick-up in Britain's housing market, accelerated by the government's ‘Help to Buy' programme introduced in the Budget, was a positive, but could mean the UK again has to face the potential consequences of a rapid increase in prices last seen following the housing boom of 1997-2007. Only nine of 29 economists surveyed said the...