The governor of the Bank of England, Mark Carney, has confirmed that the Bank does not have a veto over the government's Help to Buy scheme. Earlier this year two government ministers suggested the Bank could decide to stop the scheme, should it wish to do so. But in a letter to the chairman of the Treasury Committee, Mr Carney said the Bank's role is purely advisory. He said it would be for the government to decide whether to end the scheme. But he also warned that the Bank could make recommendations about it at any time. "The Financial Policy Committee (FPC) is not constrained by the government's timetable for any such advice; it could make recommendations at any time," he wrote.
Help to Buy has already proved controversial, with some economists saying it has boosted house prices too quickly. The second part of the scheme, under which the government guarantees mortgage repayments, began in October.....Read more here