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Carney vows to curb housing bubble risks

Bank of England governor Mark Carney said he is acutely aware of the risks of a housing bubble and is ready to step in with direct action to head off the threat.

In an interview with the Daily Mail, Mr Carney said he could use the new powers of the Bank's financial policy committee to curb surging house prices and uncontrolled mortgage lending.

Bank of England governor Mark Carney. Credit: Nigel Roddis/PA Wire

He stressed that he was alert to the potential "damage" of a house price bubble, saying: "I lived in the country [the UK] in the late '80s, 1990s, I saw the boom-bust cycle in the housing sector, the damage it can do, the length of time it took to repair.

"I'm very alert personally to this issue."