No special measures, says Bank economist

Bank of England chief economist Charlie Bean has said there will be no special intervention by the Bank to protect homeowners.

Mr Bean said most people were currently managing their home repayments and repossessions were low, while the current levels of employment are high, AFX News reports.

He concluded: "We are not in a position where we need special measures at this juncture."

Such news may mean that the housing market remains stagnant, with the lack of extra help possibly also affecting would-be first-time buyers.

Those finding difficulty in buying may look at self build as an alternative.

Earlier the Bank of England governor Mervyn King admitted to a House of Commons committee that mortgage lenders were still being affected by a lack of confidence in the wake of the credit crunch, with HBOS suffering last week from false rumours that it was in similar trouble to Northern Rock last year.


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