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...
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