Carney told to rein in housing market , the biggest threat to Britains stability

PRESSURE ON CARNEY

The Bank of England was told to invoke new legal powers, allowing it to rein in Britain’s booming housing market for the first time. Would-be housebuyers should have to put down bigger deposits and the Government’s Help to Buy scheme should be cut back, the Organisation for Economic Cooperation and Development said.

The intervention from the OECD, an international think-tank, comes after senior figures at the Bank of England identified the housing market as the biggest threat to Britain’s financial stability.

It's a reminder that - thought his name won't be on the ballot paper - Mark Carney, the Governor of the Bank of England, could play a decisive role in the 2015 general election. If he acts on the OECD's advice soon, the housing market would cool - and so might his relationship with George Osborne, who appointed him last year. Read our report here.