Vince Cable, the business secretary, yesterday warned of a danger of house prices “getting out of control” as Whitehall’s official forecasters predicted a near return to the bubble of 2007.
In real terms the market will by 2018 peak at just 3 per cent below the heights last seen six years ago, the Office for Budget Responsibility estimated in new figures produced on Thursday.
The OBR has revised upwards its forecast by some 10 per cent since March, in part because of the projected impact of the coalition’s controversial Help to Buy mortgage scheme.
Annual house price inflation is not expected to return to the giddy pace of the last decade, with in-year rises set to peak at 7.2 per cent in 2015, the OBR suggested.
But the inflation-busting rises from 2013 to 2018 will together add more than 20 per cent to a market that Read more