BoE Won't Let Help to Buy Fuel Housing Bubble

The new Bank of England Governor has pledged that the Bank will bring the Help to Buy scheme to an end if it threatens to create a housing bubble. Mark Carney said he and the Financial Policy Committee would not extend the scheme beyond its initial three-year period if it started to threaten the stability of the economy.  The statement is doubly significant since George Osborne has given the Bank the responsibility to switch off or extend the scheme, under which the Treasury will help fund a portion of homebuyers’ deposits.  The Governor’s comments came as he unveiled his new policy of “forward guidance”, under which the Bank will pre-commit to fixing interest rates until unemployment drops beneath 7%. He said he would not allow it, or Help to Buy, to fuel a housing bubble. Read more on the Sky News website.