The Bank of England is expected to set out new measures to control the housing market this week, including requirements to limit risky mortgage lending.
According to Inside Housing
The Financial Policy Committee at the BoE will reportedly use its biannual Financial Stability Report to act on mortgages after concerns about the growth of a housing bubble.
Mark Carney, governor of the BoE, has the power to introduce measures to cool the market, including affordability tests for borrowers or limits on how much can be borrowed.
It can also recommend changes to the government’s help to buy scheme, which allows buyers to access a mortgage with a 5 per cent deposit.
It has been widely reported that the FPC’s report – due out on Thursday- will contain at least some of these measures.