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BOE gearing up to rein in UK housing market

Pressure to act mounts as house prices rise faster than wage growth

Published Mon, Jun 16, 2014 · 10:00 PM
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[LONDON] Bank of England governor Mark Carney is edging closer to putting restraints on the UK housing market, and economists say that's the right thing to do.

In a monthly Bloomberg survey, 85 per cent of economists said the BOE's Financial Policy Committee should take steps to cool demand for real estate when Mr Carney chairs its next meeting today.

Options include putting a minimum limit on downpayments for houses, making banks hold more capital against mortgage lending and toughening affordability tests.

The meeting comes as the debate about the risks posed by the housing market intensifies.

Chancellor of the Exchequer George Osborne plans to give the FPC new powers to curb lending and Mr Carney said last week tha…

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