Ed Balls has warned that interest rates may have to rise if the government does not act to ease the current property "boom".
The Shadow Chancellor said: “Mark Carney is right to warn about the risks to our economy of a lop-sided housing market where housing demand hugely outstrips supply.
Mr Balls said the Governor's comments put the ball in George Osborne's court, adding that the Government should cut the Help to Buy limit to £600,000 and introduce an additional "Help to Build scheme".
“Unless the government acts the danger is that the Bank of England will be forced to raise interest rates prematurely.
More top news
Anger at the verdict in the shooting of black teenager Michael Brown has left the US deeply divided during its celebration of togetherness.
For most of the country, tomorrow is set to get off to a more pleasant start as it should be drier and brighter with the odd sunny spell.
A man who was abused by John Allen as a child has spoken out as the former care home boss has been found guilty of a further eight charges.