The Bank must act to stop Britain's property bubble

It's no good the Bank of England warning that another house-price bubble is on the way. It needs to take decisive action. Matthew Lynn explains what needs to be done.

With his grey hair and gloomy demeanour, Sir Mervyn King, the outgoing governor of the Bank of England, has always been just the man to bring a bit of misery to any party.

True to form, even in his last few weeks in the job, and with some tentative signs of recovery in the British economy finally appearing, he has warned that a fresh housing-market bubble is getting going. In particular, the government risks stoking an already over-heated market with its schemes to guarantee mortgages.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.