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Britain to take action on rising house prices: Osborne

Published on Jun 13, 2014 10:05 AM

LONDON (AFP) - British finance minister George Osborne on Thursday vowed "radical" planning reforms and more powers for the central bank in an attempt to curb the country's spiralling house prices.

Making his keynote speech at London's Mansion House, the Chancellor of the Exchequer announced plans to build up to 200,000 homes, heeding the advice of the International Monetary Fund (IMF), which warned excessive demand was fuelling the boom.

He promised an "urban planning revolution", in which the government could force local councils to allow housing developments on certain brownfield sites.

Osborne also revealed plans to strengthen the Bank of England's ability to impose restrictions on mortgage loan-to-value (LTV) and loan-to-income (LTI) ratios.

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