U.K. Mortgage Cap Would Help Cure ‘Addiction to Inflation’

U.K. lenders should cap mortgages at 90 percent of the property’s value and no more than three-and-a-half times a household’s annual income to prevent another housing bubble, the Institute for Public Policy Research said.

The U.K.’s “addiction to house-price inflation” is damaging the economy and the Conservative-led coalition government should make price stability a priority, the London-based advisory group said in a report today.