Martin Taylor, a leading member of the Bank’s Financial Policy Committee (FPC) yesterday spoke in favour of the government’s Help to Buy 2 scheme, which he described as pursuing a desirable objective.

Addressing business leaders in Wolverhampton, he said the debate about housing had become “rather frenzied”.

“I don’t think, personally, that should be the FPC’s job to stop house prices going up,” he said. “Indeed, if you have an economic recovery, a rising number of households and very tight supply – all of which we seem to have at the moment – it would be very surprising if they didn’t.”

Taylor’s comments came the day after Rightmove revealed a 10.2% leap in property prices in London in the course of just one month.

The FPC, which was established after the banking crisis with the remit of encouraging financial stability, has specific tools at its disposal to monitor and bear down on potential credit bubbles. It can request that the Prudential Regulation Authority increases the amount of capital banks are required to set aside as buffers against the loans they make, and recommend changes in policy to the Treasury.

Taylor suggested yesterday that the FPC is so far happy with the housing market recovery.