The growing buy-to-let property market in the UK could
post a threat to wider financial stability, a Bank of England committee has
said. Buy-to-let mortgage lending had the potential to "amplify" a
housing boom and bust, the Bank's Financial Stability Committee (FPC)
concluded. Lending in this sector has risen by 40% since 2008, the FPC said. It
stopped short of suggesting any intervention by government or regulators at
this stage. "As the market continues to grow, particularly if driven by
loosening of underwriting standards, the sector could pose risks to broader
financial stability, both through credit risk to banks and the amplification of
movements in the housing market," the committee said. Read more on the BBC
website.
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