Although on the face of it these measures seem pretty sensible, I don't think they're actually going to contribute in any way to solving the problems we have within the housing market at the moment.
Any real solution would mean bringing house prices down to an affordable level, but people are too scared of the implications of that, and the government don't seem to want to even consider anything that might reduce house prices.
There is a great reluctance to admit that there is already a bubble in the housing market. It worries me that articles such as this one talk about 'averting a housing boom'.
As far as I'm concerned the boom is already here - house prices, particularly in the South East (London) are ridiculously high. It's a terrible situation for first time buyers, and things like the government's Help to Buy scheme only makes matters worse by helping to maintain the falsely inflated prices.
The sooner we can admit that there is already a problem in housing market, the sooner we can actually do something useful about it. ... and I think the real solution will need to be a lot more radical than the kind of measures that are being proposed here.
A cap on the proportion of home loans that can be lent at high multiples of income has been proposed. The plan was outlined by the Bank of England as governor Mark Carney said the housing market could be a threat to the UK economy's stability. Under the proposal, lenders will not be allowed to lend any more than 15% of residential mortgages at more than 4.5 times a borrower's income.