The Bank of England governor, Mark Carney, has played down the threat of a UK housing bubble – as the Royal Institution of Chartered Surveyors (RICS) warned house price rises could become unsustainable in some areas.
Carney told MPs on the Treasury committee that Britain’s rising market was not currently a threat to financial stability, because mortgage approvals and sales were picking up from low levels during the financial crisis.
“We’ve had an acceleration from quite a low level. Any time we see a sharp increase in credit growth we take an interest.
“We do have to put in some context though that it is still running below historic averages.”
Carney added that the Bank was monitoring the government’s Help to Buy scheme, but stressed it was modest in scale compared with the overall market.
via The Guardian
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