The new Bank of England governor, Mark Carney, has expressed his concern about the lack of new homes being built in the UK citing that there is a strong demand among would-be buyers to get on the property ladder.
It is hoped that strategic decisions made now to try to control mortgage lending will avoid the need for severe and drastic policy actions to be taken if there is a boom-bust in the property market.
Mortgage approvals are running at levels not seen since Northern Rock was nationalised in February 2008.
The right way to do policy - to protect against the boom and bust cycles - is to act early in a graduated, proportionate way and that reduces the probability of having to act in a bigger way later.
– The new Bank of England governor Mark Carney speaking in an interview with the Guardian