Britain's economic recovery is now firmly entrenched thanks to a spending spree by consumers - and fears of a housing bubble are just ‘hysteria', say leading economic forecasters.
The economy will grow by 1.4% this year, rising to 2.4% in 2014, according to a report by the EY ITEM Club, the Daily Mail reports. The independent forecasters, sponsored by accountancy group EY (formerly known as Ernst & Young), also predicted a recovery in the housing market, with more than a million transactions this year and prices up 3.5% in 2013 and 6.5% in 2014. But the report dismissed criticism that the governments's Help to Buy mortgage initiative might fuel a housing bubble as ‘hysteria'. Peter Spencer, chief economic adviser to EY ITEM, said: ‘Despite recent criticism o...
To continue reading this article...
Join Professional Adviser
- Unlimited access to real-time news, industry insights and market intelligence.
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters.
- Make smart business decisions with the latest developments in regulation, investing retirement and protection.
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes.