Labour’s plans to control house price growth

Does any of this make sense?

The Guardian reports on a future Labour government’s possible plans to restrict house price growth by either empowering the Bank of England or themselves. If responsibility were handed to the Bank, it would work very much in line with their current role, restricting overall inflation, except it’s unclear whether – when prices are falling (see now) – they would be expected to stimulate house price growth. The tool wouldn’t be interest rates, but the power to tighten compulsory mortgage affordability criteria. Were the government itself to try to restrain house price growth, presumably limiting mortgages would play a role alongside building.

The unanswered questions are endless. House price growth where? Are we talking about regional data (which differs wildly)? How does making loans harder to come by help those struggling the most? Won’t the end result of such a policy simply redistribute wealth to the wealthy? Won’t the market become a free-for-all for cash-rich foreign investors, who’ll be able to buy a bolthole in London combined with a Government-backed investment returning whatever arbitrary % the government deems correct?

It’s a mess.