11:07AM BST 09 Jun 2014
The Bank's twice-yearly Systemic Risk Survey showed 40pc of UK banks, building societies and asset managers said the risk of property price falls posed a "key risk" to the economy, compared with 36pc of respondents last November and just 14pc in the second half of 2012.
“The majority of respondents focused on the residential market as opposed to the commercial property market,” the Bank said yesterday.
Concerns about surging house prices are now close to levels seen in 2008, when prices fell at double digit rates in some parts of the country. Six years ago, 45pc of respondents cited a house price correction as a key risk.
Ian McCafferty, a Bank of England policymaker, said on Monday that reining in government schemes such as Help to Buy, which offers guarantees for high loan-to-value mortgages, would be “no bad thing” if done proportionately.