GEORGE Osborne is to give the Bank of This will mean the size of mortgage loans compared to a person's income or the value of the house could be limited if the Bank's
If used, the same cap will also be applied to every Help To Buy mortgage under the
At present, there is a wide variation across the
Last night, in his annual Mansion House speech,
"But I'm not going to opt for the easy route of some of my recent predecessors; duck the issues, risk a housing boom and keep my fingers crossed it won't damage the economy. So no irresponsible gambles with stability; no short-term fixes. Housing is a long-term problem and our economic plan will provide long-term answers."
The Chancellor said that while, at present, there was "no immediate cause for alarm", noting how house prices were still lower in real terms than they were in 2007, there was a need for vigilance.
"There are on the horizon things that should give us some causes for concern. If
While house prices in
During the last year, house prices across the
Stressing he wanted the Bank of
"If the Bank of
"And if they really think a dangerous housing bubble is developing, they will be able to impose similar caps on loan to value ratios; as they do in places like
"The danger of his failure to act on housing supply is that we see a premature rise in interest rates to rein in the housing market, which ends up hitting millions of families and businesses."
He added: "You can't deal with the cost-of-living crisis and create a strong and balanced recovery without building more homes."
GEORGE Osborne is to give the Bank of
This will mean the size of mortgage loans compared to a person's income or the value of the house could be limited if the Bank's