21 May

Bank of England: More homes needed

Bank of England: More homes needed

The governor of the Bank of England is calling for more homes to be built in order to meet demand.

Mark Carney told Sky News that the problems in the UK housing market could undermine the country's financial security and its long-term economic future.

Therefore, an increase in property building rates would help to address some of the issues - especially in an area where the Bank cannot directly influence outcomes.

He stressed that the central bank was keen to ensure that people did not borrow more than they could afford and this could lead to problems for the country as a whole.

"We don't want to build up another big debt overhang that is going to hurt individuals and is very much going to slow the economy in the medium term," said Mr Carney.

The prime minister supported the governor's call for more homes to be built and claimed that the government's Help to Buy scheme was playing a key part in increasing the number of property developments.

David Cameron responded by saying the Bank of England governor was right to say that more houses need to be built throughout the UK.ADNFCR-1222-ID-801722245-ADNFCR

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