Britain’s central bank is moving to put the brakes on surging property prices in the UK.<br /><br />From October, the Bank of England is to cap the number of home loans higher than four and a half times a borrowers’ income.<br /><br />From this week there will be tougher checks on whether people can afford to repay their mortgages when interest rates go up from the current low 0.5 percent.<br /><br />UK policymakers have become more and more concerned about the housing market.<br /><br />Prices have been increasing at around 10 percent annually in Britain and at nearly double that rate in London, where cash buyers from abroad are also fuelling demand.<br /><br />The stellar recovery in the housing market is thanks to record-low interest rates, falling unemployment and government-sponsored property purchase schemes.<br /><br />The BoE has said it does not aim to curb house prices directly, but instead it is focused on ensuring that lending does not get out of control.<br /><br />with Reuters
