The Bank of England should invoke new legal powers allowing it to rein in Britain’s booming housing market for the first time, an influential international think tank has said. Would-be housebuyers should have to put down bigger deposits and George Osborne’s Help to Buy scheme should be cut back, the Organisation for Economic Co-operation and Development said. Full story >>
The literal meaning of bubble is "a ball of air or gas with liquid around it", but here the word is used metaphorically to refer to a surge in a particular market caused by speculation which results in an explosion of activity in that market segment causing vastly overinflated prices. The prices are not sustainable and the bubble is usually followed by a crash in prices in the affected sector (or, in other words, the bubble bursts).