Osborne to address over-heating market concerns

Osborne is expected to use his speech to address concerns of a housing bubble with a pledge to offer new incentives to boost housebuilding, especially in London.

Incentives could be offered to develop brownfield sites – thought to be cover enough land in England to build 2.5 million homes.

He is also expected to say how the Bank of England could tackle any financial instability caused by house price rises.

Meanwhile business secretary Vince Cable said this morning that action must be taken to stop the "housing boom" in parts of the UK getting "out of control".

Cable was “appalled” at lenders offering more than 3.5 x income, saying the desire of would-be homeowners needed to be balance with economic stability.

Cable told the BBC: "In the short-run, the immediate problem is to stop this boom getting out of control."