he government’s back in the business of underwriting mortgages, in a move that sees Rishi Sunak using a taxpayer-funded helicopter to spray petrol on to the house price wildfire currently burning.
The market was running hot before this latest intervention, which sees the state underwriting 95 per cent mortgages for homes worth up to £600,000. Rightmove, for example, recently reported a 2.1 per cent jump in asking prices month on month, taking them to a record £327,797. The annual increase was 5.1 per cent.
That’s what happens when a shortage of supply meets heavy demand, the first lesson your child will learn when they start taking economics classes, but something Mr Sunak, a former banker, seems to have forgotten.