Only rate rises and increased house building will cool housing market, says Eversheds

The Bank of England has announced measures to cool the housing market. Bruce Dear, head of London real estate at Eversheds, has commented on the measures, saying that the bank is trying to drown the housing market’s over-exuberance in red tape.

He said: ‘Now nothing kills enthusiasm like a form, but the new affordability and borrower tests will only be as good as the people applying them.

‘Remember the phantom room rents and inflated incomes used to get mortgages in the last boom? In the end, the only things that will really cool the market are putting up rates and building thousands of more homes — now.’