The alarm has been raised over house prices and some are more concerned than others.  Some have certainly hit the panic button already while there are others that are sitting back and enjoying the spoils of the current state of the housing market.  Home sellers that have been incapable of garnering a buyer now see demand that has led to stronger asking prices and resulting strong sells.  Homeowners have watched as the rising home prices have lent to their increase in property equity. 

The property ladder has been frozen for years and those hoping to either upgrade or downgrade their property ownership found little movement within the ladder to allow their needs to be fulfilled.  Homeowners had little demand from first time buyers for their starter home and those in larger properties hoping to downgrade had no buyers either.  Frozen was exactly the term that best described the condition of the property ladder.  No one could move and no one could climb on.

First time buyers began returning to the housing market and the demand was so strong and supply falling so fast that it sparked a fear of a housing bubble that would soon grow to expand so quickly it would burst and rain on the efforts of the economic recovery.  But the Bank of England has assured that there is no need for such fears.

MPC member Ben Broadbent said in an interview with the BBC, “What really matters is not just house prices per se but whether there is a lot of credit growth on the back of that. Currently there isn't a great deal.

“It's clearly something the Bank and the financial policy committee (FPC) will want to keep an eye on.”