Bank of England governor has said he is watching the Help to Buy scheme and the housing market closely. He said it's important to see the recent developments in context - with mortgage applications still below the long term average for example.
The MPC’s Spencer Dale, executive director and chief economist at the bank, said it seems the shared equity part of the scheme is working – and not fuelling a housing boom.
There could be some controversy over Carney and Dale's defence of the scheme.
Worrying answer from Carney. Seems to suggest level of property market activity seen before crash was healthy and should be reached again.— Mike Bird (@Birdyword) August 7, 2013
The Pound has erased all losses initially seen with the inflation report, Carney says housing is starting to recover.— DailyFXTeamMember (@DailyFXTeam) August 7, 2013
Carney and Dale didn’t make a comment on the second part of the scheme – the mortgage guarantee part – other than that details are not yet known.