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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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Government's Help to Buy scheme 'unwise'

Mark Carney warned property prices pose a risk to the economy. Credit: Dominic Lipinski/PA Wire

The Government's "unwise" Help to Buy scheme has been criticised amid the Bank of England governor's warnings of a property "boom".

Sam Bowman, research director of the Adam Smith Institute, said: "Mark Carney's comments on house prices are timely and accurate: the house price boom in London, the south-east and the East Midlands is fundamentally down to a lack of housing."

He added that the "supply-side crisis" meant it was up to the Government - not the Bank - to bring prices under control, and called for a rolling back of the green belt to create space for one million homes.

Mr Bowman said that while Help to Buy was "probably too small to make a substantial difference to house prices" it was "inflating demand without increasing supply".

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