Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of low long-term real interest rates on house prices.

According to the latest figures published by the Office for National Statistics, UK house price growth moderated to 7.6% in the year to February 2016, down from a peak of 12.1% in September 2014. A number of factors are likely to have supported demand for housing in recent years, including low interest rates.

The Government has established the independent Financial Policy Committee (FPC) within the Bank of England, designed to monitor risks to the UK financial system and take action to address those where appropriate. The FPC has been given the authority and a powerful set of tools to tackle the risks posed to financial stability from the housing market.