Tougher affordability tests on homebuyers are regarded by bankers as the most likely move to be announced by the Bank of England’s Financial Policy Committee today as it attempts to cool down an overheating housing market.
Soaring house prices in London and a sharp pick-up in activity in most regions have heaped pressure on the committee to act, even if only with a symbolic measure. One of its most senior members said that the housing market was “flashing amber” on the committee’s dashboard.
Any measure is likely to be unpopular with some because it could push up the price of mortgages or reduce their supply, with potential first-time buyers looking vulnerable to even a modest crackdown.
The statement from the FPC, a new Bank of