LONDON, Oct 30 (Reuters) - Britain's government published proposals to give the Bank of England new legal powers to control residential mortgage lending on Thursday, but said it wanted more evidence before deciding on a BoE request to regulate lending to landlords.
The proposals are in line with finance minister George Osborne's desire to give the BoE greater oversight of residential mortgage lending to reduce the risk that the housing market could overheat and destabilise Britain's economy.
"The government is proposing that the Bank is granted powers of direction for loan-to-value limits and debt-to-income limits for owner-occupied mortgages," Osborne said in a statement.
The BoE's Financial Policy Committee (FPC) can already recommend limits on how much banks should lend mortgage applicants relative to their income and the value of their home. Both the BoE and the government want to beef up the FPC's powers by making such limits legally enforceable.
New figures from the lender, Nationwide, has shown that house prices for the UK edged up 0.5pc in October after falling in September. However, the annual rate of growth has slowed again and mortgage approvals are down 20pc on the beginning of the year
Countrywide Plc (CWD.L) Announced, in its interim management statement for the three month period to 30 September 2014, that it saw the best ever third quarter financial result on top of the strong performance reported for the first half of 2014 and further validated the strategy of building a broad based business across multiple products lines and geographic spread. The total income came in at £188.4 million, up by 22.0% from the same period in the preceding year.
Foxtons Group Plc (FOXT.L) Announced in its interim management statement, that company’s performance in Q3 2014 was negatively impacted by a sharp and recent slowing of volumes in London property sale markets. The company’s turnover was £39.9 million, while its mortgage revenue grew by 13.8%. Additionally, the company remains debt free and generated £13.9 million of adjusted operating cash during Q3 representing an operating cash conversion rate of 98%.
Housebuilding at strongest levels since 2007, despite skills shortage: Housebuilding activity is at its strongest levels since 2007 as the recovery broadens out beyond London to the rest of the U.K., an industry body has reported.
High-end London house prices drop 20%: Luxury homes in prime central London, worth between £1 million and £2 million, have seen a drop in price of 20% over the past six months, as buyers are deterred by the talk of Mansion Tax and the impending general election.
Cargiant and Queens Park Rangers battle to build thousands of London homes: Two businesses have unveiled rival plans to build thousands of homes on the last big undeveloped site in London – even though neither has ever built a single house.
Homeowners in property worth over £3 million to be hit with £10k tax: Labour would tax homeowners in properties worth above £3 million over £10,000 on average per year, in some cases much more, according to research by the Institute for Fiscal Studies.
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