FPC will be granted buy-to-let powers
Speaking to the Commons Treasury Committee, Osborne said he will bow down to Bank of England governor Mark Carney’s request and grant the FPC additional powers subject to consultation “as soon as possible”.
He said: “The governor of the Bank and the FPC have asked for additional powers over buy-to-let mortgages, which weren’t included, and we are in the process of granting those powers so they have that tool as well.
“I take the governor’s view very seriously. I think it’s true that, if you look historically at the UK, one of our biggest challenges has been managing credit booms and house price cycles.
“That’s why we created the Financial Policy Committee, in part to try to manage some of those risks.”
Last month the Bank released a statement saying buy-to-let could amplify housing and credit cycles because landlords are more likely to respond to falling house prices by selling their properties.