Clegg heeds Carney's warning on housing boom

The Deputy Prime Minister told ITV News the government should listen to the Governor of the Bank of England's warning on the risks of booming house prices threatening the economic recovery.

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Carney 'absolutely right' Britain needs more houses

The Bank of England has the powers to prevent a new housing "bubble" developing, the Prime Minister said, after its governor Mark Carney suggested it was the biggest risk to economic recovery.

Prime Minister David Cameron agrees that Britain needs to build more houses. Credit: PA

Speaking to Sky's Murnaghan programme, David Cameron said: "We have given the Bank of England the duty to make sure that bubbles are dealt with in the economy. They have all the powers they need to do that.

"He (Mr Carney) is absolutely right when he says fundamentally we need to build more houses in Britain".

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