Bank of England (BoE) Deputy Governor Jon Cunliffe said in a speech on Tuesday that the central bank should act sooner than later to manage the financial stability risks.

"Given the vulnerability that already exists and the powerful drivers in the UK, particularly the housing market, if credit began again to grow faster than GDP, I would want to think about action to manage the financial stability risks sooner rather than later," he said.

Cunliffe noted that a rise in house prices was driven by lower interest rates.

"The rise in secured debt and the increase in house prices reflected in part structural reductions in interest rates," he said.