COMMONS

Governor of Bank of England on Help to Buy

28 November 2013

Committee publishes response from the Governor of the Bank of England, Dr Mark Carney, to a letter from the Chairman Andrew Tyrie MP, seeking clarification of the Bank of England’s role in the Help to Buy: mortgage guarantee scheme.

The Chairman of the Treasury Committee, Andrew Tyrie MP, said: 

"This letter is a step forward: it brings some much needed clarity to the Government’s Help to Buy Scheme. We now know who is responsible for what.

The Bank of England has no power of veto over Help to Buy. Responsibility for it lies with the Government.

The Bank has clarified that it will offer advice only with respect to any risks that may be posed by the scheme to financial stability, and to the safety and soundness of firms. The Bank could already, and should, offer such advice whenever appropriate.

It is now up to Parliament, and the Treasury Committee, to hold the respective parties to their distinct roles."

Image: iStockphoto

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