- 7 updates
The Chancellor George Osborne has tonight set out "radical" planning reforms designed to help build up to 200,000 new homes.
The controversial proposals, announced during his annual Mansion House speech, would see councils forced to pre-approve brownfield sites for housing developments.
Mr Osborne also said it was important that the Bank of England was able to act "independently of politics" and take action by itself with new legal powers, to help fix Britain's housing market.
These were expected to be in put place by the end of next May.
"I want to make sure that the Bank of England has all the weapons it needs to guard against risks in the housing market," the Chancellor said.
"I want to protect those who own homes, protect those who aspire to own a home, and protect the millions who suffer when boom turns to bust."
Labour's shadow chancellor Ed Balls said:
The Chancellor George Osborne has said ahead of his annual Mansion House speech:
George Osborne has said he is to give the Bank of England legal powers to stop people taking out mortgages too large for them to pay off.
In his annual Mansion House speech, the Chancellor is to set out how the Bank will be able to order restrictions on the ratio of mortgage loans compared to borrowers' incomes, or to the value of their house.
In his speech, Mr Osborne is expected to say that while the housing market does not pose an immediate threat, it is important to insure against risks in the future.
Chancellor George Osborne says measures unveiled today will help prevent "future risks" to the housing market by letting the Bank of England intervene on the size of mortgages homebuyers can obtain.
Mr Osborne also said action to build more homes would help more people get on the housing ladder.
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