Bank of England Financial Stability Report, May 2008

Despite some of this morning’s headlines, the main thrust of today’s Financial Stability Report (FSR) was that downside risks to the financial system, property markets and to the broader economy remain. The Bank highlighted the buy-to-let sector as a potential fault-line for the residential property market, and a weaker occupier market as a key downside risk to the commercial property sector. We share these concerns.

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