Tight housing supply will keep UK prices stable, says Moody's
Low housing supply will keep property prices stable in the UK and therefore have a positive impact on residential mortgage-backed securities, according to Moody's.
It says that house builds will have to rise significantly for supply to return to pre-financial crisis levels, and although demand for homes will be dampened by lower household income and credit supply, this will be offset by a rise in the number of households.
Moody's says that it forecasts the base rate to rise from its current low level of 0.5% to 2% by the end of 2013.
September 22, 2011
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