As Britons brace for the Bank of England to announce steps this week to restrain the housing market, the No. 2 at the U.K. Treasury dismisses talk of a bubble.
“People shouldn’t get carried away with the scale of the problem,” Chief Secretary to the Treasury Danny Alexander said in an interview at Bloomberg LP’s New York headquarters yesterday. “It’s localized” in London and southeast England, he said. “Across the rest of the U.K. you have seen rises in property prices but they’re at a much more subdued level.”
The comments come amid investor expectations that Bank of England financial-stability officials will outline action this week to stop households taking on levels of debt that could pose a threat to the economy. The Financial Policy Committee met on June 17 and its decisions will be made public when the BOE publishes its twice-yearly Financial Stability Report June 26.
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