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
Police have released 12 images of people wanted in connection with what they describe as 'disorder' at a McDonalds in central London.
Sunderland have appointed former Manchester United manager David Moyes to replace new England boss Sam Allardyce
A Russian adventurer looks to have smashed the record for a solo round-the-world flight in a hot air balloon.