BoE head issues house prices warning

Bank of England governor Mark Carney has revealed he has concerns the UK could be heading for another bubble in house prices.

UK chancellor George Osborne recently claimed that the country is not going to experience a property values bubble.

Speaking at the Economic Club of New York, Mr Carney stated that he will tighten lending requirements if he believes it is a necessary step to take.

"There is a history in the housing market of moving from stall speed to warp speed. We want to avoid that," he said.

Mr Carney's comments coincide with the release of data from the Royal Institution of Chartered Surveyors (Rics) which showed more surveyors are expecting house prices to rise than at any time recorded in the last 14 years.

"It's no secret that the housing market is on the way up and prices are surging ahead in many parts of the country," said Simon Rubinsohn, chief economist for Rics.

Data released by the Office for National Statistics recently showed its house price index stood at 185.8 in August, which was a new record high.

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