Chancellor denies UK housing boom

<p>George Osborne says the UK does not have a housing boom.</p>

Chancellor of the exchequer George Osborne has denied that the UK is experiencing a housing boom as a result of the government's policies.

He stated that the coalition's actions – such as the launch of the Help to Buy programme – are not going to lead to a new house prices bubble in the UK.

Speaking at the annual meeting of the Institute of Directors, Mr Osborne explained housing sales and mortgage approvals are still lower than they were before the start of the recession.

However, data for August revealed recently by Halifax showed that UK house prices rose at the fastest rate since June 2010.

Mr Osborne claimed that he was "alert to the risks" of a housing boom and will be working closely with the Bank of England on this issue in the coming weeks and months.

Commenting in a recent address made in London, the chancellor insisted that the UK's economy has "turned a corner".

However, critics of the government have claimed that the recovery – with growth of 0.7 per cent recorded during the second quarter of the year – is too centred on the housing market.

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