House prices are also ruled by supply and demand and restrictive planning policies (mismanaged by successive governments) have contributed to the mess the housing market is now in.

People have got rich just by sitting on building land and houses and doing nothing.

Lift the restrictive planning policies so a greater number of houses are built - so that they are affordable to a greater number of people.

Will any government do this?....a dramatic house price fall could well detrimentally effectthe economy.

Sooner or later, some government will have to grasp the nettle.........................

Anna, Camberley, UK

People know what they are getting into when they take out a mortgage.

9 years ago I refused endowment mortgages that advisors kept throwing me. I also refused to accept that interest rates would go to as low as 3% and opted for fixed repayments over 10 years at 5%.

I for one borrowed at three times my salary initially based on my then wage not expected future earnings and found it a struggle. I could not afford the current market prices even with an increased salary (which I've worked hard to achieve).

You can currently rent properties cheaper than take out interest only mortgages. If I was a new buyer I'd sit tight for 6-12 months and rent a property. They will certainly be no worse off and will not be stuck with negative equity should the expected crash arrive.

Remember banks are never the losers if the crash does happen. The current market has been driven by greed.

I for one will sit this one out.

Craig Watkins, Bury, England

Can we all remember that there are only three factors that determine house prices, supply, demand and affordability, the same as it has been throughout history.
If so called "key workers", who are earning more in real terms now than ever before, cannot get on to the housing ladder, then who or what is driving up prices?. Is there an economist out there who can explain this?
The prophets of doom who have been forecasting a house price crash for the last five years have proved to be spectacularly wrong.
The market conditions that caused the boom and bust of the late eighties/early nineties do not exist today, a simple analysis of now and then will show this.

G.J. Edwards, Gerrards Cross, Leafy Bucks

The BoE operates in the wider interests of the economy and its primary role is to ensure that inflation does not exceed a certain level.
If interest rates have to rise to 6% so be it.
Why should the BoE endanger the rest of the economy just to keep mortgage lenders, homebuyers and homeowners happy? They do take into consideration mortgage interest rates and the effects on the economy as a whole should house prices decline.
If it is for the greater good of the economy that interest rates rise and that this remains the case even when falling house prices are taken into consideration - then so be it.
We live in a market economy. Markets rise and fall in all sectors. There are good and bad times in all sectors.
In the UK we have had it good for a long time - especially the housing market - so maybe a bad time is due.
Its never pleasent to suffer a bad time - then again would homeowners prefer the BoE to do nothing and let the economy drift into recession?

AG, Petersfield, UK

Time for a very welcome house price correction! IRs should go higher than 6% and stay there for long time!

Michele, Richmond, Surrey

We live in a small town in Devon. Here it's virtually impossible to buy a decent family house for under £500k as demand seems to far outstrip supply. There's very little on the market.

Now, for a small town there seem to be very large number of houses let out.. Renting is less of a problem.

Maybe a blow to the buy-to-let market in the form of increasing interest rates would release some of the housing stock to genuine buy-to-own families like us who want to move up the ladder, but don't want to take the long term capital risk of not owning our own property.

Derek, Sidmouth, Devon

If people borrow beyond their means and they become homeless, it is a fitting punishment, and they should certainly not be compensated for theit own decision through free will! If the housing market does not crash here, I will move to America where it has already crashed a considerable amount, and with a strong pound my savings earning a high rate of interest will soon afford me a house outright without messing aroung the UK and mortgages, I will not be a beast of burden as a young home buyer in this land of bubble prices, when will this ridiculous bubble burst? Why dont more young people emmigrate to the US, or to Europe where house prices are much cheaper... oh yes, they already are, removing the first time buyer element from the UK housing market. BTL folk, I hope your greed swallows you up.

James, Bristol, UK

If Fionnuala Earley of the Nationwide believes that interest rates are set purely for the benefit of the housing market then she is seriously mistaken.
Interest rates are set to control CPI inflation (which has nothing to do with house prices). If inflation shows signs of rising - as it does now - then rates will be increased. If this results in house price falls, then so be it.
Everyone would be wise to remember that the price of houses can go down as well as up.

Ian, Cambridge, UK

I dislike the manipulate language used by Fionnuala. I would hardly call a boom in house prices over many years "housing market stability", it is more of a problem brewing up. Likewise I would hardly call an incremental 0.25% increase "too sharp a rate hike", more like a belated response to the problem brewing, fuelled by lazy borrowing criteria by banks, mass speculation on property prices and also fuelled by the Bank of England misjudging where to set base rates over the past 5 years. There is good reason why 'boom and bust' is a well known tag line.

Jon Adams, Dubai, UAE

according to official data from the British Bankers Association net mortgage lending fell from £5.1bn to £5bn in April. These figures
are not weak enough to stop the Bank of England raising rates again, hopefully in June but in any case no later than August.

Peter Jones, Glasgow, UK

If thats the best the chief economist can do I'd hate to see the Jack and Jill stuff the rest of her team might produce!

The problem is not interest rates its years of lax, ill thought through and unsustainable lending by companies like the Nationwide that caused the housing bubble - its about to burst - its not different this time as she and her colleagues say - debt is real - house prices do go down - the result is negative equity. Nationwide had best get a bigger letterbox for when the keys start being dropped through their door - its not different this time.

The future homeless will no doubt be able to seek compensation for being allowed to borrow 5 times salary - I for one hope they win!

Steve Baker, Otley, North Yorkshire

Fionnuala : 'too sharp a rate hike could undermine market confidence and dry demand up swiftly. On top of this it could also lead to widespread payment difficulties, which could precipitate price falls'
Oh, darling, price falls? How unfortunate! What, with just 2 quarter point increases? You should be thinking about that when you let people borrow up to 7x times income or when you financed 100% rent coverage BTL investment (speculation). It is your fault darling! And the government's of course, for not taxing BTL speculators punitively.
Housing has become a real mess, especially in London, it will now be a hard way out

Nik, London,

Why is Fionnuala Earley always commenting on the future path of interest rates - I thought that the bank had an inflation targetting remit and not a house price targetting remit. Surely, if inflation is above the two year forecast then rates should rise regardless of mortgage approvals.

A similar, we don't target house prices argument was used to maintain artificially low housing market stimulating rates when CPI inflation was low and asset inflation was rampant. Surely it works the other way around, or should the bank of England just have no credibility?

CityAnon, London, UK

If house prices rose 10.8% (say 11%) in the first five months, then in order for house prices to rise only 5%, this year, house prices over the next 6 months woudl have to fall nearly 6% or 1% every month. This suggest the 5% forecast is foolish. House prices will not fall as long as consumer sentiment remains strong. They may remain flat for the remainder of teh year which means house prices for the year will be on average about 10%.

John Fernandez, London, Uk

have you got a number for mortgage check thankyou

david, doncaster, s yorkshire