Bank of England committee flags up housing market concerns

The Bank of England's financial policy committee (FPC) has the power to review the Help to Buy scheme yearly. Photograph: Yui Mok/PA

The Bank of England is continuing to closely monitor the affordability ofmortgages and the lending policies of banks after taking steps last week to cool the housing market.

The record of the November meeting of the financial policy committee, set up inside Threadneedle Street to spot bubbles in the financial system, shows that concerns about the housing market had risen since their last meeting in June.

"Committee members had become more concerned about the potential risks to financial stability that might arise from developments in the UK housing market," the record said.

After the meeting the Bank announced last week that the flagship Funding for Lending Scheme (FLS), which supplies cheaper money to banks and building societies, would end a year early for mortgages to focus on small businesses.

The record of the meeting shows that Bank of England governor Mark Carney informed the committee – made of Bank of officials and external members – that he and the Treasury had agreed to amend the FLS to focus on business lending.

"The governor informed the committee that HM Treasury and the Bank agreed that an amendment to the FLS to remove the incentive for new lending to households would be sensible … committee members welcomed this," the record states.

The FPC, a key element of the coalition's regulatory changes to avert another financial crisis, also discussed other options to dampen the mortgage market by forcing banks to hold more capital. This could be done "to specific types of mortgage lending, just to new lending or to the entire portfolio of loans".

It could also take action if it was concerned about the affordability of mortgages by limiting the loan-to-value or loan-to-income ratios for mortgages.

"The committee agreed that it would closely monitor housing market indicators covering house price affordability and sustainability, indicators of indebtedness, underwriting stands, exposures of lenders to highly indebted households and the reliance of lenders on short-term wholesale funding," the record said.

It also noted that borrowers might start to switch to fixed rate mortgages which, while helping households when interest rates rise, could cause problems for banks.

Labour MP John Woodcock admits he is seeking help for depression

Woodcock says depression regularly leaves him 'barely able to get out of bed' and was inspired to go public by another MP

John Woodcock said he was prescribed antidepressants 'to relieve my black moods'. Photograph: Helen Maybanks

Labour MP John Woodcock has admitted he is seeking help fordepression, which regularly leaves him "barely able to get out of bed".

The MP for Barrow and Furness in Cumbria published a blogpost on his website on Wednesday in which he said he went to a doctor last week and was prescribed antidepressants "to relieve my black moods".

Woodcock said he was inspired to go public with his illness after deriving "such strength" from the way another Labour MP, Kevan Jones, talked about his depression in public, as well as the former spin doctor Alastair Campbell.

The 35-year-old father of two, who has been an MP since 2010, has had a terrible run of luck, by his own admission.

Last year he fell off a ladder and bumped his head, causing long-term health issues and earning him the nickname "parliament's Mr Bump". Then he was assaulted on a train after challenging a man about his racist behaviour. He'd already done his knee in running for a vote and ended up on crutches.

"All of this was a bit embarrassing but nothing to hide away or be ashamed of. Hell, I even agreed to let my local paper, the North-West Evening Mail, come and take a picture of me in hospital after my ladder escapade," wrote Woodcock on Wednesday.

He added: "So, because brilliant, inspiring people have had the courage to speak up and make the case that my latest ailment shouldn't be treated any differently from these physical injuries, I am just going to come right out and say that I am clinically depressed. I went to see a doctor this week who prescribed me medication to relieve my black moods.

"I am very much hoping that my constituents and fellow parliamentarians won't notice much of a difference from me popping pills. I have mostly managed to avoid moping about like Eeyore up until now, and am assured that the anti-depressants I am taking will not induce any inappropriate 'you're my best mate' euphoria in the House of Commons chamber."

Recovering from the ladder incident had taken a "painfully long time", he wrote, adding that there are "regular periods when I am left utterly drained by simple tasks and barely able to get out of bed – and that exhaustion can make me really down".

He said he had been inspired by Labour colleagues to be upfront about his depression: "I have decided to make all this public because I derived such strength, though I never told them, from the way that my friends Kevan Jones, the Labour MP for North Durham, and Alastair Campbell have talked about their battles with depression. Their decision to be open and make a contribution to ending the stigma around mental illness has made it possible for me, despite the job I am lucky enough to have, to go and ask a GP for help. And so I want to make my contribution to tackling the stigma too, not just getting treatment for depression but being prepared to talk about it."

Woodcock said he'd taken anti depressants twice before – once as a student and once after his sister died 10 years ago: "They helped me get through those difficult periods then and I really think they will now too, not by changing my personality but in lessening the despair that sometimes comes when I have no energy."

In the blogpost, he admitted he was worried at the reaction to his admission.

"I will be the MP for Barrow and Furness for as long as my constituents want me, and I hope to serve my country in any way that I can. And yes of course I am worried about what people will think of me declaring that I will be representing them while taking anti-depressants (not least, I remember the outrageous way that Gordon Brown was asked the question by Andrew Marr during an interview at his final Labour conference as prime minister). But I really don't think it need be a big deal. And if it does turn out to be, well at least I might make it a bit easier for next person who is in the public eye feeling like this."

Woodwock received instant support from colleagues. "Outstanding MP, good man, good friend and good luck," tweeted Jamie Reed, MP for the neighbouring Copeland constituency. Jonny Reynolds, MP for Stalybridge and Hyde in Greater Manchester, said he was "really proud" of Woodcock.

Kate Stringer, head of communications at Time to Change, England's biggest mental health anti-stigma programme, run by the charities Mind and Rethink Mental Illness, said: "It is incredibly encouraging to hear that John Woodcock has felt able to talk publicly about his mental health problem. John also says that hearing other people share their experiences, including those in high profile positions, has helped him to speak out about his depression, which is a really positive sign. We are now beginning to see more parliamentarians feel able to discuss their mental health problems openly without fear of discrimination and we want people from all walks of life to be able to do the same."

Matter of health: PM considers splitting Dar’s responsibilities

Finance Minister Ishaq Dar. PHOTO: ZAFAR ASLAM/EXPRESS

ISLAMABAD: 

Prime Minister Nawaz Sharif is said to be considering easing the workload on his old confidant and point man on the economy, Finance Minister Ishaq Dar.

According to sources, the prime minister has been advised by well-wishers that Dar’s health situation necessitates that his burden of managing a shattered economy be shared. Sources add that on “health grounds,” the prime minister may appoint a financially savvy PML-N leader as minister of state for finance, who will take decisions on the basis of policy guidelines formulated by Dar.

Dar was admitted to the Rawalpindi Institute of Cardiology last month after he complained of heart trouble and subsequently had to undergo angioplasty surgery. After treatment, Dar was reported to be taking rest in Punjab House and is expected to join office on Wednesday.

A close aide to Dar revealed that the prime minister and his family were reportedly concerned about Dar’s health and that the issue of easing the burden on him was expected to be discussed in a family dinner at PM House on Tuesday. Dar is a close relative of the prime minister.

Recently, Dar had been overstretching himself by attending all of the prime minister’s foreign tours, except the last visit to Thailand and Sri Lanka. Dar had also been involved in decision making on all political, foreign policy and defence related matters, sources add.

However, after his ailment, Dar himself expressed willingness to take on a lighter job or have his burden shared. Dar, who had been reportedly working 15 to 18 hours a day had been unable to give time to his family, especially his wife who had undergone surgery in London a couple of months back.

Sources also add that despite the IMF programme, the economic conditions of the country are worsening. While the fiscal front is stabilising, serious challenges on taxation and balance of payments remain, with the finance minister being unable to fully focus on the job during this critical juncture.

Options on the table for the premier range from reassigning certain divisions from the ministry of finance, to assigning another senior leader in an advisory or minister of state capacity.

Sources add that in case the prime minister agrees to assign Dar a less stressful role, Punjab Chief Minister Shahbaz Sharif will likely take on a more important role in managing the economy.

The other option under consideration is to lessen the burden of the minister by taking out certain divisions out of his control. Dar is currently minister for finance, revenue, economic affairs, statistics, and privatization, which means he is handling five important divisions in addition to advising the premier on political affairs.

Sources revealed that the prime minister was considering assigning the ministry of privatisation to Mohammad Zubair, who is currently chairman of Board of Investment, or Miftah Ismail.

High-level huddle: PM Nawaz meets army chief

Army Chief General Raheel Sharif. PHOTO: INP

ISLAMABAD: 

Army Chief General Raheel Sharif met with Prime Minister Nawaz Sharif here on Tuesday to discuss issues of national security, an official statement said.

This was the first meeting between the premier and Chief of Army Staff General Raheel since he assumed charge last week. According to an official handout, security-related matters and issues pertaining to national importance were discussed in the meeting. However, sources familiar with the meeting told The Express Tribune that the issue of missing persons also came under discussion.

The government and military authorities have been pressured by the Supreme Court giving Thursday the last day to produce 33 missing persons.

According to sources, General Raheel assured the prime minister of the military’s cooperation with civilian authorities on the issue.

The COAS also called on President Mamnoon Hussain at the Aiwan-e-Sadr on Tuesday, where the president congratulated him on assuming office.

Defence Minister Khawaja Asif, who earlier appeared before the apex court, also met the prime minister to discuss how to meet the SC deadline on the issue of forced disappearances.

The outgoing Chief Justice Iftikhar Muhammad Chaudhry has warned institutions that non-compliance with the court order could have negative implications both for the prime minister and the newly-appointed army chief

Presence of Indian forces is harmful to Siachen Glacier: Sartaj Aziz

Advisor to the Prime Minister on National Security and Foreign Affairs Sartaj Aziz. PHOTO: EXPRESS

Presence of Indian forces on Siachen Glacier is harmful to the environment according to Advisor to the Prime Minister on National Security and Foreign Affairs Sartaj Aziz,Radio Pakistan reported on Wednesday.

Pakistan is facing a water shortage and Indian forces are damaging one of the largest sources of water to Pakistan on a regular basis‚ Aziz said.

Presence of Indian forces on Siachen is a big issue and should be resolved as soon as possible, Aziz stated insisting that India should pull out its troops from the glacier.

He further added that disposal of daily use items by thousands of Indian soldiers is detrimental to the glacier.

India and Pakistan are working on resolving their water issues, Aziz stated. The two countries are doing this through multiple channels including Pakistan-India composite dialogue and Indus Water Commission.

Aziz also said that water should be properly used in Pakistan‚ it should be conserved and new water reservoirs should be built. He also said ‘Senate has recently formed a committee to deliberate various dimensions of water related issues and suggest its recommendations.’

Casillas: Ronaldo is the best player in the world

The goalkeeper has insisted his Blancos team-mate deserves all the praise he receives, while he also believes Carlo Ancelotti's men can win the treble this season

Iker Casillas has claimed that Real Madrid colleague Cristiano Ronaldo is the best player in the world.

Addressing an anti-bullying event on Tuesday, the Spain international lavished praise on the Portugal international, who has scored 17 goals in 14 Liga appearances for the Blancos this season.

“There’s one player who’s ahead of everyone else, who’s in amazing form and who deserves all the praise," the Madrid club captain enthused. "That player is Cristiano Ronaldo.

"I don’t think there’s any doubt about it and he shows it game after game. It’s good for Madrid because our hope is that, thanks to him, in a few months' time we’ll be achieving our goals for this year.”

Indeed, Casillas believes that Carlo Ancelotti's men have the potential to win the treble this season.

“We’re working for it," he explained. "We’re training for it, but we can’t go crazy. Because even though right now people are praising us, that can take the edge off.

"We need to keep going as we are right now and wait for the end of the season.

“This is a young, ambitious team. Hopefully, we’ll win the European Cup – we’ve been waiting for it for 11 years - another league and, why not, the Cup.”

The 32-year-old shot-stopper, who has been forced to play second fiddle to Diego Lopez in La Liga this season, also spoke about the criticism he is forced to deal with on website Twitter.

"On social networks people insult me a lot,” Casillas added. “There's a lot people who call you names behind an avatar, but then, in person, they’re cowards.

"If this happens, you should go to the police, who act to block accounts.”

This is Chelsea's 'best chance' to reclaim Premier League title - Ivanovic

The Serbian feels that Jose Mourinho's Blues are closer to recapturing the trophy than at any point over the past three years

Chelsea defender Branislav Ivanovic believes that his team can mount a title challenge after closing the gap on Arsenal to four points.

After winning the Premier League under Carlo Ancelotti in 2009-10, the Blues have finished nine, 25 and 14 points behind eventual champions Manchester United, Manchester City and United again, respectively, in each of the past three seasons.

Chelsea have only lost two league games so far this term and extended their unbeaten home league record under Jose Mourinho to 67 matches with a 3-1 victory over Southampton on Sunday.

"This is our best chance [to reclaim the title] but we have to be careful," Ivanovic told the Daily Star. "We must carry on this way and fight for every game and every point.

"At this stage in the years before, we would always be trailing by a lot of points but we are up there now and this has given us an opportunity.

"It's a good thing when you go into each game feeling you are there and right at the top. We have improved as a team but we have to show it in every game."

Ivanovic has started every Premier League game for Chelsea this season, scoring one goal and contributing to four clean sheets.