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JANUARY 27, 2016 | BY A & S Property

Carney expresses buy-to-let concern

Bank of England governor Mark Carney has once again expressed concern at the rapid boom in the buy-to-let market.

Answering questions from MPs about potential risks to the economy, Carney said: “We think developments in the buy-to-let market have warranted heightened scrutiny and have done so for some time.

"As a general rule, any time you see a very sharp and sustained increase in activity in one area… it at least bears heightened scrutiny.”

Bank of England figures show lending to landlords has surged from 8.8% of new loans eight years ago to 14.5% last year. The bank warned in its December financial stability report that its financial policy committee “stands ready to take action if necessary”.

Carney told the Treasury Select Committee the Bank will examine the effect of tax changes brought in by George Osborne to calm the market.

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