House market volatility 'not beneficial'
The Royal Institution of Chartered Surveyors (RICS) is urging the Bank of England to cap the average rise in house prices to 5% a year, to head off the danger of an unsustainable property boom.
The institution said putting a ceiling on the increase would prevent another house price bubble and excessive risk taking.
Simon Rubinsohn, Chief Economist at RICS, explained the issue to Today programme's Sarah Montague: "The volatility that we've seen in the UK housing market isn't beneficial for estate agents or the public."
But Sir Howard Davies, a deputy governor of the Bank of England, said the proposal is ill-conceived: "The real problem is that we aren't building enough houses, so we're trying to cope with the problem of supply."
First broadcast on the Today programme on Friday 13 September.
13 Sep 2013