Treating the symptoms and not the cause. Yet another example of "thinking out of the box".
Houses are unaffordable because there is demand way above the supply. The supply is restricted because of the consistent policy applied by successive governments to encourage nymbism in the name of democracy (or sacrosant property rights). This strategy is the fruit of excellent propaganda carried out by the well-off who own land and capital. If you believe that owning a house you are better off because your "asset" grows in price and that the zillions of pounds sunk into bricks (call it unproductive capital) come at no cost for you from other parts of the economy, think again. You may feel wealthier, but your cost of living surpasses your asset appreciation, and you are in effect poorer.
The propaganda machine worked very well to convince people there is nowhere in sight to build more. That Britain is a densely populated small island. The words "redevelopment" and "high rise" have been taken out from the dictionary but may apply to the top end of the housing market, or in remote areas nobody should really live in.
Mr Carney is a charming man, but if he believes houses are affordable and there is no "bubble" I would like him to answer a few questions:
1) he's paid some £874,000 including a £250,000-a-year housing allowance. So would he support legislation requiring all employers to pay 25-30% housing allowance on top of the regular income?
2) has he looked at median house price and median income, or at average house prices on a GDP-weighted basis? Is the person in the middle of the economy more, or less able to buy a house in 2013 than in 2007? If wealth is created in London and house prices in London surpass income then should the BoE be worried that the sustainability of the economic recovery is feeble?
3) has he asked the person who packs his wife's bags at their local Sainsbury where do they live, how long does it take to get to work, and how many people share the bathroom?
4) has he looked at the average price per sq meter and average household area? Perhaps house prices have not shot up in a bubble but houses are smaller and smaller so his "macro" analysis has some flaws
Rest assured, Mr Carney is going to print money, on paper, plastic or alufoil to ensure people will believe it is in their interest to go on ever higher debts for ever smaller homes. They call this "affordable mortgages". Don't waste any second. Go buy a house, the timing is right!