George Osborne is to give the Bank of England greater powers
to prevent the government's Help to Buy scheme causing a property boom. Fears have been raised that the attempt to
kick-start the market could result in a house price "bubble", with
the market overheating and borrowers over-stretching themselves. This is of
particular concern in London where prices have risen by around 10%
year-on-year. From January, the Help to Buy initiative will provide mortgage
guarantees on properties worth up to £600,000 but the Bank's financial policy
committee (FPC) will make annual reviews and could recommend that the cap is
reduced. It was initially due to assess the scheme after three years. Read more
on the Guardian website.
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