BoE empowered to burst UK housing bubble

By Matthew Scully
12 Jun 2014

George Osborne announced on Thursday that the Bank of England will gain powers to curb risky mortgage lending as the government aims to head off a house price bubble. His statement, at his annual Mansion House speech, follows a decision by Lloyds Bank two and a half weeks ago to cap the size of its largest mortgages.

The policy change by Britain's biggest mortgage lender, and the widespread fears of a housing bubble, were both hot topics at the Global ABS conference in Barcelona.

“We have taken measures to limit the amount we would lend to those borrowing £500,000 or more,” said Lloyds’ Ian Stewart, head ...

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