The Bank of England has indicated that it might have to impose a limit on the amount of money that banks could lend to as mortgages to house buyers in the UK houses following concerns that the country is headed towards a property bubble.

Governor Mark Carney has confirmed reports that the banks might be ordered to put a limit on mortgage lending under the new rules for the sector. The Royal Institution of Chartered Surveyors has recommended placing a cap on the amount of money that can be lent by the banks as mortgages and the amount people can borrow in relation to their deposit or their income. These measures might be adopted if the housing prices rise above 5 per cent this year.

Governor Carney said that the central bank will ask banks to set aside more money in extreme situations, leaving lesser money with the banks to be lent as mortgages. However, experts have said that the business in the property market has improves significantly but the talks of a boom is still early and the market still ends to make a full recovery.

Meanwhile, Business Secretary Vince Cable has warned that the government's schemes to boost the property markets will lead to an increase in the property prices and may even lead to a property bubble. The Liberal Democrat minister warned over a possible property bubble as the property prices rise rapidly in the country.