Property market needs 'vigilance', Mark Carney warns Addressing MPs, he said the Bank would consider a potential cap on loan-to-value ratios and "more intensive supervision" of banks to rein in lending if the market was judged to be running out of control. However, he stressed that there was little sign of a boom yet, with "big pockets of the country where there has not been any meaningful recovery." His comments, at a bruising Treasury Select Committee meeting, came in the wake of mounting concerns about the Help-to-Buy scheme. Business secretary Vince Cable has questioned whether the mortgage subsidy element should be introduced at all next year, and Barclays boss Antony Jenkins has warned of "the risk of a property-driven boom." He also suggested that markets may have been at least partly right in their surprise reaction to the guidance. Government borrowing costs rose, in the wake of the announcement despite the pledge to keep rates low. Talking specifically about long-term rates, such as the 10 year gilt, he said: "My personal expectation was that long rates would rise." The yield on the 10-year gilt has risen from 2.481pc when the guidance was announced to 2.937pc, which Mr Canrey said was "consistent with a recovery in the economy." The Government yesterday sold £3.75bn of 10-year debt at 2.976pc, the highest price in more than two years. MPs argued that the rise in long-term rates was effectively a tightening of policy. Mr Carney refused to counter that it was a loosening, arguing instead that it had made policy "more effective" and reiterating that the policy had made it easier for hosueholds and businesses to understand when interest rates would rise. Andrew Tyrie, the TSC chairman, said: "It's going to be pretty tough down The Dog and Duck working out whether this is a tightening or a loosening." Mr Tyrie added: "Credibility in monetary policy is hard won and easily lost. The new framework is more complex to explain than its predecessor. Rightly, the Bank is now engaged in bolstering credibility in its new framework with detailed explanations. Confidence in monetary policy will be enhanced where those detailed explanations provide greater certainty about the likely responses of the Bank as circumstances change.