United Kingdom: Selected Issues
IMF Staff Country Reports, July 28, 2014
Source details
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- United Kingdom: Selected Issues
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Bibliographic details
- Published: July 28, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498304337.002
Housing cycle volatility and drivers
- The UK housing cycle is described as "highly volatile" due to tight housing supply constraints and fluctuations in credit conditions.
- Housing supply-side constraints can be alleviated through changes to the planning system and tax reforms.
- The new National Planning Policy Framework introduced by the government is creating the incentives for local councils to increase available land for construction.
- There are early signs that this change in the planning system is contributing to the recovery in housing construction.
Financial stability and macroprudential concerns
- Targeted macroprudential policies could address financial stability risks stemming from the housing market.
- Although mortgage credit as a share of gross domestic product has been declining in the current housing recovery, there are signs that there is a build-up of financial risks:
- loan-to-income ratios are increasing in London and among first time buyers.
Scope and focus
- The Selected Issues paper focuses on the housing and business cycles in the United Kingdom.
- Subjects covered include: Financial institutions, Financial sector policy and analysis, Housing, Housing prices, Macroprudential policy, Mortgages, National accounts, Prices, Private investment.
Source: International Monetary Fund. "United Kingdom: Selected Issues" (July 28, 2014).
Content in this bundle
- United Kingdom: Selected Issues, IMF Country Report No. 14/234, July 8, 2014