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| Version 2 | Version 3 |
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| Carney promises action on buy-to-let property market | Carney promises action on buy-to-let property market |
| (about 1 hour later) | |
| The Bank of England has again expressed concern about the UK's buy-to-let property market. | The Bank of England has again expressed concern about the UK's buy-to-let property market. |
| The Bank's governor, Mark Carney, said he was concerned about high levels of lending to landlords and that the Bank would take action. | The Bank's governor, Mark Carney, said he was concerned about high levels of lending to landlords and that the Bank would take action. |
| "There are a number of things happening ... we are watching it closely and we will take action," he told the FT. | "There are a number of things happening ... we are watching it closely and we will take action," he told the FT. |
| Mr Carney said the problem was that investors might sell their properties at the same time if house prices fell. | Mr Carney said the problem was that investors might sell their properties at the same time if house prices fell. |
| In September, the Bank's Financial Policy Committee (FPC) made a similar warning about the buy-to-let market. | In September, the Bank's Financial Policy Committee (FPC) made a similar warning about the buy-to-let market. |
| The committee, which is led by Mr Carney, said the growing market posed a threat to the UK's financial stability. | The committee, which is led by Mr Carney, said the growing market posed a threat to the UK's financial stability. |
| "The stock of buy-to-let lending might be disproportionately vulnerable to very large falls in house prices," the FPC said. | "The stock of buy-to-let lending might be disproportionately vulnerable to very large falls in house prices," the FPC said. |
| Buy-to-let rush? | Buy-to-let rush? |
| Since the FPC's warning, Chancellor George Osborne has announced that stamp duty rates will rise steeply for anyone buying a home that is not their main residence - which would include buy-to-let investors as well as second-home buyers. | Since the FPC's warning, Chancellor George Osborne has announced that stamp duty rates will rise steeply for anyone buying a home that is not their main residence - which would include buy-to-let investors as well as second-home buyers. |
| But with the higher rates of duty only starting at the beginning of the next financial year, there are worries that there may be a rush by some would-be landlords to buy properties before then, which might help to push up house prices even further. | |
| Lending to landlords has grown rapidly in recent years. | Lending to landlords has grown rapidly in recent years. |
| There are now 1.7m buy-to-let mortgages, making up about 16% by value of the total stock of all outstanding mortgages. | There are now 1.7m buy-to-let mortgages, making up about 16% by value of the total stock of all outstanding mortgages. |
| Each year, more than two million individual landlords declare rental income to HM Revenue & Customs in their tax returns. | Each year, more than two million individual landlords declare rental income to HM Revenue & Customs in their tax returns. |
| For the 2012-13 financial year, 2.1 million taxpayers declared income from property, up by more than a third from the 1.5 million in 2007-08. | For the 2012-13 financial year, 2.1 million taxpayers declared income from property, up by more than a third from the 1.5 million in 2007-08. |
| Earlier this year, Mr Carney said the Bank was in discussions with Mr Osborne about obtaining greater powers to regulate the buy-to-let mortgage market. | Earlier this year, Mr Carney said the Bank was in discussions with Mr Osborne about obtaining greater powers to regulate the buy-to-let mortgage market. |
| So far, however, there is no word on what these powers might look like. | So far, however, there is no word on what these powers might look like. |
| The governor also used the Financial Times interview to defend his policy of "forward guidance" about the path of interest rates. | The governor also used the Financial Times interview to defend his policy of "forward guidance" about the path of interest rates. |
| In the past two years, he has suggested several times that the Bank would soon start to "normalise" the base rate, which remains at 0.5%. | In the past two years, he has suggested several times that the Bank would soon start to "normalise" the base rate, which remains at 0.5%. |
| However, inflation has remained far below the target of 2%, prompting the Monetary Policy Committee to hold its fire. | However, inflation has remained far below the target of 2%, prompting the Monetary Policy Committee to hold its fire. |
| No 'heads-up' | No 'heads-up' |
| "Did I know that oil was going to fall 12% in the last 10 days? No, I didn't know that," Mr Carney said. | "Did I know that oil was going to fall 12% in the last 10 days? No, I didn't know that," Mr Carney said. |
| Neither, he added, had the Chinese "given me 12 months heads-up" that they would devalue the yuan. "But I will continue to try to frame as accurately as possible what's guiding my decision process." | Neither, he added, had the Chinese "given me 12 months heads-up" that they would devalue the yuan. "But I will continue to try to frame as accurately as possible what's guiding my decision process." |
| The UK's inflation rate turned positive in November for the first time in four months, official figures showed on Tuesday. | The UK's inflation rate turned positive in November for the first time in four months, official figures showed on Tuesday. |
| The US Federal Reserve is expected to raise rates for the first time in nearly a decade on Wednesday, but Mr Carney's comments indicate that the UK's central bank remains in no hurry to follow suit. | The US Federal Reserve is expected to raise rates for the first time in nearly a decade on Wednesday, but Mr Carney's comments indicate that the UK's central bank remains in no hurry to follow suit. |
| The Bank has not altered UK interest rates for the past six-and-a-half years. | The Bank has not altered UK interest rates for the past six-and-a-half years. |
| Its annual survey of household finances found that almost a third of households would have to reduce spending, work more or alter their mortgage payments if rates rose by 2 percentage points without any increase in wages. | Its annual survey of household finances found that almost a third of households would have to reduce spending, work more or alter their mortgage payments if rates rose by 2 percentage points without any increase in wages. |
| The Bank of England research said that the government's austerity programme "has weighed on household spending, and it is likely to continue to do so". | The Bank of England research said that the government's austerity programme "has weighed on household spending, and it is likely to continue to do so". |