Local Elections: UKIP Makes Significant Gains

Nigel Farage says his party is a "serious player" for 2015 after UKIP made significant gains in the local elections, leaving the other main party leaders admitting there was work to do.

The Prime Minister conceded the Conservatives had to start delivering on immigration and welfare reform, and said the public had become "frustrated" with the status quo.

With just a handful of results still to be called, Mr Farage successfully forecast that his party would win double the 80 seats predicted.

Mr Farage told the leaders of the main parties he would "see them in Westminster" as the results showed UKIP now had the potential to cause an "earthquake" at next year's General Election.

He said: "The UKIP fox is in the Westminster henhouse."

Asked whether the party would widen its pitch to voters beyond the EU and immigration, Mr Farage insisted it already had "clear principles" on cutting taxes and bringing back grammar schools.

David Cameron said the Conservatives had got to work harder

He added: "Don't think the immigration issue is going to go away. The plight of the eurozone is such that immigration is likely to be an even bigger question at the time of the general election."

With two results still to come, UKIP had gained 167 seats - giving them 184 seats in all but with no councils under their control; and Labour had won 3,999 seats, giving it control of 81 councils - an increase of five.

The Conservatives have 2,679 seats overall, controlling 41 councils - down 13; the Liberal Democrats picked up 882 seats , seeing the number of councils under their control falling from eight to six.

UKIP took seats off both Labour and the Conservatives in their heartlands, which was particularly damaging to Ed Miliband, who has been accused by his own party of running an "unforgivably unprofessional" campaign.

Ed Miliband celebrated in Redbridge but said discontent had built up

Labour lost its grip in the north and, in a serious blow, lost control of Thurrock, a key marginal for the General Election in 2015.

Mr Miliband rejected that he was an electoral liability and told Sky News: "I think we ran a good campaign."

"I think in some parts of the country we have had discontent building up for decades about the way the country has been run and about the way our economy works … so what you are seeing in some parts of the country is people turning to UKIP as an expression of that discontent."

UKIP made its greatest gains in Essex, where Margaret Thatcher once identified the "Essex Man", a man who moved out of London, once voted Labour but switched to the Tories.

Deputy Prime Minister Nick Clegg admitted the Lib Dems had a bad night

David Cameron said: "We have got to work harder and we have got to really deliver on issues that are frustrating people and frustrating me, like welfare reform and immigration and making sure people really benefit from this recovery."

Education Secretary Michael Gove told Sky News there were lessons to be learned from UKIP's success.

According to the latest Sky News projection, the results so far would give a hung parliament at the 2015 General Election, with Labour holding the largest number of MPs.

Sky's election analyst Professor Michael Thrasher said UKIP's success suggested the party would claim at least one seat in the House of Commons next year - most likely in Castle Point, Essex.

Sky's European elections coverage starts at 9pm on Sunday

As predicted, the Liberal Democrats suffered significant losses, losing control in Kingston-Upon-Thames and in Portsmouth.

Liberal Democrat leader Nick Clegg admitted the party had had a bad night but said: "Actually I think in the areas where we have MPs where we have good organisation on the ground ... we are actually doing well."

Mr Farage celebrated by going on a tour of the areas where he had been most successful.

Siobhan Robbins, who was with him in Thurrock, said: "It was like he was a pop star. People were gathered around him and there was a scrum. I saw two grown men cry. One of them was saying: 'Thank you Nigel Farage. Thank you for showing us the light'."

:: Follow all the results as they come in on Twitter with @skyelections.

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Missing Yacht: Life Raft Discovered Unused

The life raft on the missing yacht Cheeki Rafiki has been found unused in its storage space, the US Coast Guard has said.

The search for the missing British sailors ended at 3am UK time after a search of the capsized boat found the only realistic means of survival had not been not deployed.

Navy divers found a completely flooded cabin with shattered windows, said the Coast Guard.

From left: Andrew Bridge, Steve Warren, James Male and Paul Goslin

"A US Navy warship smallboat crew and surface swimmer captured underwater imagery clearly identifying the raft in its storage space [behind the wheel]. The image was shared with and acknowledged by the families," said a statement.

"The crew and swimmer deployed to investigate the overturned boat after a helicopter crew located it 1,000 miles offshore Massachusetts and within the US Coast Guard's search area.

The lfe raft was found stored in the aft portion of the upturned boat

"The Navy surface swimmer determined the boat's cabin was flooded and windows were shattered, contributing to the complete flooding inside."

It had already been announced that the search would be called off in the early hours of Saturday if no signs of possible survival were discovered.

"None of the current developments" indicate the crew are still alive, said the US Coast Guard.

A statement on behalf of Steve Warren's family said it was an "incredibly difficult" time and that the search effort had been "exceptional".

The search effort involved military aircraft and ships

The upturned 40ft yacht had been found on Friday, with divers first knocking on the hull to check for signs of life.

The families had said they were still hopeful their loved ones would be found despite the search being only hours from ending.

Relatives of Steve Warren, 52, Andrew Bridge, 22, James Male, 23, and Paul Goslin, 56, said they had been told "endless stories" of people surviving for months at sea.

The men's familes had campaigned for the search to go on

The vessel ran into difficulties on May 15 and began taking on water while returning to the UK from a regatta in Antigua.

Yacht training and charter company Stormforce Coaching said it had been in contact with the skipper at the time, and that the crew were keeping the situation stable.

The original search was halted after 53 hours amid bad weather but resumed on Tuesday after a request from the UK government and a online petition which collected more than 200,000 names.

The Cheeki Rafiki had been at a regatta in Antigua

The hunt included commercial vessels as well as aircraft from the US Coast Guard, US Navy, US Air Force, the Canadian military and the RAF.

Rescuers scoured more than 21,000 square miles of ocean during their second search for the boat.

Experts had agreed it would be impossible for the crew to survive outside of the life raft in cold, rough seas.

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Missing Yachtsmen Search To Last One More Day

The US Coast Guard has said the search for four British sailors missing in the Atlantic will last for one more day.

Speaking in Boston, Massachusetts, the man leading the hunt said that if nothing was found the search would be called off at midnight on Friday - 5am on Saturday UK time.

Captain Anthony Popiel said he had phoned the men's families: "I informed them that the search would continue throughout the night and into tomorrow.

"If by midnight tomorrow (5am UK time) there are no further developments to indicate search efforts would locate the crew alive we will suspend the search."

Family members of the missing men outside the Foreign Office on Thursday

He added: "It is only after deepest consideration that we suspend active search efforts."

Debris was found in the search area on Thursday, but Captain Popiel said none of the objects located so far match the missing yacht.

"We've informed the British consulate of our plans and appreciate the support we've received with this decision," he told a news conference.

Captain Popiel says he has informed the men's families

"With sincere compassion for the families of these four men, our thoughts and prayers are with them all during this difficult time."

Steve Warren, 52, Andrew Bridge, 22, James Male, 23, and Paul Goslin, 56, were on board the 40ft yacht when it ran into difficulties a week ago while returning to the UK from a regatta in Antigua.

An initial search for the stricken vessel was called off on Sunday amid bad weather in the Atlantic Ocean, but began again on Tuesday after pressure from the men's families.

More than 200,000 people also signed a petition demanding the operation be resumed and the families of the four sailors have written to President Obama to thank him for his support.

The search, around 1,000 miles east of Cape Cod, Massachusetts, includes commercial vessels as well as aircraft from the US Coast Guard, the US Air Force, the Canadian military and the RAF.

"The Coast Guard cutter Vigorous will arrive on scene tonight," added Captain Popiel.

"A US Navy warship has already arrived in the search area and commenced search operations with a helicopter."

More than 17,500 square miles of ocean have been covered since the search resumed three days ago.

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David Moyes Investigated Over 'Wine Bar Assault'

Former Manchester United manager David Moyes is being investigated over claims he assaulted a man in a wine bar.

The alleged altercation between Moyes, 51, and a 23-year-old man is said to have happened in Clitheroe, Lancashire, at around 10pm on Wednesday.

Moyes was having a drink with a friend in the Emporium wine bar when a "minor scuffle" allegedly took place, said Sky's Nick Martin.

Police said no one had been arrested and there are differing accounts of what happened.

The alleged incident is said to have taken place at the Emporium wine bar

They said officers were called to the venue after reports a local man had been assaulted by a 51-year-old man.

The alleged victim did not require hospital treatment, Lancashire Police said.

A spokesman for the Emporium said: "There was an incident outside the building.

"However, it did not affect any of our customers or staff and has been dealt with by the police."

The town centre bar describes itself as "half coffee shop, wine bar and brasserie; half interior design superstore", offering a "unique, intoxicating lifestyle experience".

Moyes was sacked from Old Trafford last month after a disastrous season.

He has been linked to the vacant manager's chair at Celtic and an immediate return to Champions League football.

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Millions Vote In Local And European Elections

By Jason Farrell, Senior Political Correspondent

Voting gets under way today in the European elections, the only time outside of a general election when all 46 million voters can take part in a ballot on the political parties.

At the same time voters in England and Northern Ireland will elect candidates in local elections, giving 23 million people the chance to cast a second vote.

The Electoral Commission has warned voters not to take selfies in the booths.

It is not against the law to photograph yourself at a polling station.

But anyone who inadvertently reveals how someone else votes could face a £5,000 fine or six months in prison, if for example they shared a photograph on social media which captured someone completing a ballot paper.

The commission has also raised concerns about election fraud in 16 areas including Slough, Birmingham and Bradford.

In one of the "high risk" areas, Tower Hamlets, there will be police stationed round-the-clock at all 125 of their polling stations to combat concerns about voter intimidation.

There are elections in 161 councils in England and 11 in Northern Ireland.

Polling stations open from 7am to 10pm, with the first council results expected to come in during the early hours of Friday.

The European election results will not be known until Sunday, with initial results expected from 9pm.

Twenty-eight member states vote in the election over the course of four days, with groups of countries voting on different days.

A total of 751 members of the European Parliament will be elected, the number rising from 736 in 2009 to reflect Europe's growing population and the addition of a new member state - Croatia - which joined in 2013.

The European election results will become known on Sunday

The make-up of the new Parliament is likely to have a strong influence on the future direction of the European Union and its move either towards growing unity or separation.

As well as deciding on local councillors and MEPs these ballots will be seen as an important gauge of the electoral mood in the country ahead of the 2015 General Election.

The contest in Scotland is also likely to be viewed as a dry run for September's independence referendum.

Professor Michael Thrasher, from The Elections Centre at Plymouth University, said the contrast between the local and European polls "could not be greater".

He said: "Because of the system of proportional representation and the fact that the UK only selects 73 MEPs the scope for widespread change is limited.

"Not so in the local council version where more than 4,200 seats are at stake.

"Hundreds of these will change hands and the outcome will prove a more reliable guide to the 2015 general election than the Euro equivalents."

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Robber Still On The Run After Fleeing Open Prison

A convicted robber who fled from an open prison on Tuesday remains on the run.

Police have warned members of the public not to approach John Arnold, 30, who is described as white, about 5ft 11in and slim.

He has brown hair and brown eyes and may be wearing green prison-issue trousers.

Anthony Peloe is back in custody

Anthony Peloe, 43, who was convicted of possession of firearms with intent to commit harm in December 2005, escaped with Arnold from Thorn Cross open prison in Warrington.

He has since been arrested by Cheshire police.

These are the latest in a series of embarrassing incidents in recent days where prisoners have absconded from custody.

Police have confirmed that Damien Burns and Dean Jackson, who went missing from Hatfield Prison in South Yorkshire on Monday evening, have now been arrested. Burns was found in Scarborough, while Jackson was found in Durham.

Their escape came a day after a murderer who stabbed a blind man to death was arrested after going on the run from prison.

Arnold Pickering and Thomas Moffett

Arnold Pickering, who was jailed for life in 1991 for killing a man he wrongly thought to be a paedophile, was tracked down to an address in Oldham.

The 44-year-old had failed to return to HMP Kennet in Merseyside after leaving the Category C jail on day release on Saturday.

Another inmate, Thomas Moffett, 51, who is serving an indeterminate sentence for a number of robberies, also failed to return from day release on Saturday but was arrested on Monday night.

These escapes come just weeks after notorious armed robber Michael Wheatley - known as the Skullcracker - absconded from Standford Hill open prison on the Isle of Sheppey, Kent, while on temporary release.

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Prince Charles 'Compares Putin To Hitler'

Russian President Vladimir Putin has been compared to the Nazi dictator Adolf Hitler by Prince Charles, it has been claimed.

The Prince of Wales' alleged remark about Mr Putin's actions over Ukraine reportedly came during a four-day tour of Canada when he spoke to a woman who fled the Nazis and lost family members in the Holocaust.

A spokesman for Clarence House said: "We do not comment on private conversations.

"But we would like to stress that the Prince of Wales would not seek to make a public political statement during a private conversation."

Charles was being shown around the Museum of Immigration in Halifax, Nova Scotia, along with Camilla, the Duchess of Cornwall.

The pair paid tribute to World War Two veterans and their families, and during the course of the visit they spoke to museum volunteer Marienne Ferguson.

Ms Ferguson told the Prince she fled to Canada with her family in 1939, not long before Hitler annexed the Baltic coastal Free City of Gdansk.

Prince Charles and Camilla in Charlottetown on Prince Edward Island

Speaking to the Press Association after meeting Charles, the 78-year-old said: "The Prince said, 'And now Putin is doing just about the same as Hitler'.

"I must say that I agree with him and am sure a lot of people do.

"But I was very surprised that he made the comment as I know they (members of the Royal Family) aren't meant to say these things.

"I told the Prince that while my family and I were lucky to get a permit to travel, many members of my relatives had permits but were unable to get out before the war broke out on September 1.

"They were sent to the concentration camps and died."

Labour (Co-op) MP Mike Gapes, who represents Ilford South, has condemned the comments.

He said on Twitter: "If Prince Charles wants to make controversial statements on national or international issues he should abdicate and stand for election.

"In constitutional monarchy policy and diplomacy should be conducted by parliament and government. Monarchy should be seen and not heard."

Charles and the Russian leader are due to meet next month when they attend the 70th anniversary of the D-Day landings in Normandy on June 6.

Mr Putin has faced international anger over Russia's actions in neighbouring Ukraine, including the controversial annexation of Crimea.

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Food Worth £1bn Wasted Every Year Across UK

By Poppy Trowbridge, Consumer Affairs Correspondent

Food worth £1bn is wasted in the UK every year before it even reaches our fridges, according to figures obtained by Sky News.

Damage, flawed appearance and the cost of recycling are just some of the justifications used for throwing food away.

Food growers, producers and retailers together bin an average of 400,000 tons annually, or more than 950 million meals.

For the first time, Britain's biggest food retailer, Tesco, is expected to publish the amount of food wasted each year within its own UK operations.

The figures will show that more than 50,000 tons - about 1% of all products - gets thrown out.

Matt Simister, Commercial Director, Group Food at Tesco, said: "It really does impact a family's budget.

"What we're saying is that we acknowledge that we have a role to play in helping mums to save more money in the household.

Tesco says it is trying to reduce waste at private distribution centres

"We can reduce the wastage in our own operations, but I think more importantly, we can start to influence the wastage that happens across the whole system."

Families throw away around six meals a week.

Over a year, that can cost up to £700, according to the latest figures from the UK's Waste and Resources Action Programme (Wrap) published in November.

So when you add in what is wasted by consumers too, the total value of is closer to £13.5bn.

At private distribution centres, Tesco says it is trying to reduce the tonnage of edible waste.

Food that is perfectly usable, but unsuitable for store shelves, gets packed up and sent out to charities that feed the hungry.

Even if the economic recovery does ease the pinch on family budgets this year, the cost of some basic foods will continue to rise, according to market experts.

Halving the amount of discarded food is a goal for Wrap

Joe Rundle, a trader at ETX Capital, said: "Corn, coffee, meat … everything is going to go up considerably.

"In the short term there are seasonal factors and environmental issues that have caused the spike."

Brazil, a large coffee producer, has experienced drought, and tension between Ukraine and Russia has prompted a rise in the price of wheat.

"In the long term we are going to see an emerging middle class in the emerging markets that are really going to consume a lot more food and therefore push the price up."

Mr Rundle added: "That will probably mean that consumers are going to have to change the way they consume food and think about the way they waste it."

Wrap wants to halve the amount of discarded food by 2025.

Achieving that target should also mean the cost to consumers comes down too.

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Hillsborough: Jurors Will Examine Stadium

By Mike McCarthy, North of England Correspondent

A fresh stage in the Hillsborough Inquests begins today in which jurors will examine the layout of the Sheffield stadium.

After hearing what are described as "uncontroversial facts" and seeing a computer-generated 3D graphic of the ground, members of the jury will visit the location themselves on Friday.

The new phase in the proceedings follows a three-week adjournment which was granted after lawyers asked for more time to consider pathology evidence.

It begins with a presentation by a senior detective working for Operation Resolve - a separate police investigation into the causes of the 1989 disaster in which 96 people lost their lives.

Detective Superintendent Neil Malkin will cover a number of topics including previous inquiries in an address expected to last two days.

The tragedy occurred during a 1989 FA Cup semi-final

The inquests, which are being held in a converted office block in Warrington, are expected to last for up to a year and have so far heard from relatives of those who died. 

Their evidence, described as 'pen portraits', covered 11 days. 

After the last one was read out, lawyer Michael Mansfield QC, who is acting for many of the bereaved families, told the coroner: "They wish to express both to you and your counsel and to everyone in this court their appreciation… for the care, for the patience, for the understanding that has been extended to each of them.

"This has enabled them to unlock painful memories, as you described them last week, upsetting but also uplifting. It has provided… a permanent testament to the dignity of the human spirit."   

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Somerset Flood Relief Supplies Sent To Balkans

By Tom Parmenter, Sky News Correspondent in Serbia

Relief supplies used during flooding on the Somerset Levels will be sent to the Balkans as the region battles its worst flooding in more than half a century.

Sandbags which protected homes on the Levels earlier this year will be airlifted to Serbia as residents fight to protect their homes and vital infrastructure.

The relief effort is being coordinated by the international relief organisation Khalsa Aid, with support from the Somerset-based Flooding on the Levels Action Group (FLAG).

Organiser Ravi Singh, from Khalsa Aid, said he hoped the supplies will save many lives and homes.

Huge areas of the Somerset Levels were flooded in January and February

"We have a lot of sandbags, and there's no better cause now than to donate those sandbags to sure up flood defences in Serbia, especially as they're expecting more floods," he said.

"Those sandbags will save a lot of homes and lives, hopefully."

The Serbian Embassy in London is handling the delivery of the sandbags.

Mr Singh and a representative from FLAG will then travel to the region to provide on-ground support, including food, clean water and hygiene packs.

A man waits to be rescued from the rising waters in Vojskova, in Bosnia

Khalsa Aid, which is based in the UK, also provided relief efforts to residents hit by the Somerset floods.

Mr Singh said it was important that communities now work together across international borders during difficult times.

"The Balkans area suffered a lot during the civil war and the wars that followed. We've got mines floating around in the water probably, hundreds of thousands of mines, which is very sad," he said.

"So I think it's going to be a very, very long recovery."

At least 44 people have been killed in the disaster across Bosnia and Serbia, with the death toll expected to rise.

Authorities have begun dredging rivers in the wake of the floods

Around 3,000 landslides have been reported across the region blocking roads and damaging homes.

Some 10,000 people have been evacuated from the worst-affected areas of northern Bosnia.

Many people living near flooded rivers in the Balkans have highlighted concerns about the lack of dredging on some waterways, just as locals did during the floods in Somerset.

The government in Bosnia has revealed that a quarter of the population - around a million people - now have no access to clean water.

A dog is rescued from the flooding in Bosnia

In some towns and villages across Serbia, new evacuation orders have been issued over the past 24 hours as the water levels continue to surge.

The Serbian Prime Minister, Aleksandar Vucic, said: "We cannot seriously and responsibly estimate and make a real assessment on the damage, but I can say it is hundreds of millions (of euros). Some of people would say billions."

In Bosnia, Foreign Minister Zlatko Lagumdzija called the flood damage "immense" and compared it to the carnage during the country's 1992-95 war.

The floods have destroyed about 100,000 houses and 230 schools and hospitals, and left a million Bosnians without drinking water, he added.

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Hunt For Killer On Run From Jail For Third Time

Police are hunting a convicted murderer who has gone on the run from prison for the third time.

Arnold Pickering, 44, and armed robber Thomas Moffett walked out of HMP Kennet in Liverpool at 9.30am on Saturday morning.

The pair were due back at around 4.40pm the same day. Their disappearance was reported to Merseyside Police at about 7pm.

Pickering was serving a life sentence for stabbing a man to death in Oldham, Greater Manchester, in 1990.

He killed his 55-year-old victim, who was partially blind and deaf, while on the run from Strangeways in Manchester.

Pickering last absconded in December 2009 when he was let out on day release from HMP Kirkham to work on the bins in Manchester city centre.

He handed himself in four days later in Motherwell, Scotland.

Moffett armed himself with a nail gun and robbed off-licences

The killer is described as around 5ft 11in tall, medium build with blue eyes. He has tattoos on his arms and chest.

Moffett, 51, is serving an indeterminate sentence for a string of robberies carried out in Blackburn, Lancashire, in 2006.

He armed himself with a nail gun and then raided six off-licences.

The pair were risk assessed as suitable for temporary release on licence by the Ministry of Justice.

Officers earlier said they believe both men could be in the Southport area, and warned the public not to approach the fugitives.

Police later confirmed that a 51-year-old man was arrested in Blackburn, Lancashire, for being unlawfully at large.

Prisons Minister Jeremy Wright said: "I am not prepared to see public safety compromised.

"The system for allowing prisoners out on temporary licence has been too lax up till now and we are making major changes to address this.

"There will shortly be significant restrictions on who is granted temporary release - which from now on must be earnt - tightening up of monitoring arrangements and abolishing any leave without a clear link to rehabilitation."

Officers are appealing to anyone with information to call Merseyside Police on either 0151 777 3803 or 0151 777 3891, or via 101.

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Missing Yachtsmen: Relatives' Heartfelt Plea

Relatives of four British sailors missing at sea have made a heartfelt plea for rescuers to resume their search in the Atlantic Ocean.

Speaking to Sky News, family members of the sailors say they believe their loved ones are still alive and that the US Coastguard should not have abandoned its rescue mission.

The crew was returning from Antigua Sailing Week in the 40ft yacht when it ran into difficulties 620 miles east of Cape Cod, Massachusetts, on Thursday.

Contact with Andrew Bridge, 21, James Male, 23, Steve Warren, 52, and Paul Goslin, 56, was lost in the early hours of Friday while they were diverting to the Azores.

Mr Bridge's aunt, Georgina Bridge, said her nephew was the captain of the yacht, named the Cheeki Rafiki.

She told Sky News the sailor's family remains hopeful that the crew will be found alive.

"Obviously the family are really concerned that the search has been suspended and we are really hoping that it will be resumed," she said.

"We are holding out great hope that Andrew and the guys on board Cheeki Rafiki will be found.

The yacht reportedly capsized on the way back from the Caribbean

"We are hopeful that they were able to launch a life raft and that they are still on board that, so we would just really like the search to be resumed."

Speaking to The Times newspaper, Mr Male's father Graham Male said: "We just want them to continue searching."

US and Canadian aircraft searched for the missing crew on Friday and Saturday, with help from three merchant vessels.

The search was called off on Sunday amid treacherous weather conditions.

A US Coastguard spokesman said the crews searched more than 4,000 square miles of the ocean for pings from the vessel's personal locator beacons.

"After receiving no more transmissions we believe that we would have found them by now if we were going to find them.

"These beacons are small devices and the ones being used have a very short battery life."

Mr Bridge, from Farnham in Surrey, was being paid by the Southampton-based yacht training and charter company Stormforce Coaching for his role as captain, a spokeswoman for the firm said.

Stormforce director Doug Innes said that the yacht had first started taking on water on Thursday, but the skipper was in contact and the crew were keeping the situation stable.

"Although the search efforts co-ordinated by Boston were exceptional we are devastated that the search has now been called off so soon," Mr Innes said.

"Our thoughts are with the four yachtsmen and their families and we hope and pray for them all."

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Carney: UK Housing Market Has 'Deep Problems'

By Ed Conway, Economics Editor

The British housing market has "deep, deep" problems, according to the Governor of the Bank of England.

In an interview with Sky's Murnaghan show to be broadcast in full later this morning, Mark Carney warns that rising house prices represents the biggest current risk to the economy.

And the number of large mortgages being approved to house buyers is on the rise, he adds.

Mr Carney says that the UK is in need of new house building.

He says that compared to his home country of Canada, for example, the UK built half the number of new homes every year despite having twice the population. 

Canada builds around 200,000 new homes a year compared to just 133,000 similar properties that were built in the UK last year.

Mr Carney said: "The issue around the housing market in the UK … is there are not sufficient (numbers of) houses (being) built."

Mark Carney has issued a warning over the UK housing market

Asked if more houses need to be built, Mr Carney replied: "That would help us out.

"We're not going to build a single house at the Bank of England. We can't influence that.

"What we can influence … is whether the banks are strong enough. Do they have enough capital against risk in the housing market?"

Mr Carney said they could also check lending procedures "so people can get mortgages if they can afford them but they won't if they can't".

"By reinforcing both of those we can reduce the risk that comes from a housing market that has deep, deep structural problems," he added.

Mr Carney said there was evidence that large mortgages, where lenders approve loans of more than four times people's salaries, are on the rise again.

"We don't want to build up another big debt overhang that is going to hurt individuals and is very much going to slow the economy in the medium term," he said.

"We'd be concerned if there was a rapid increase in high loan-to-value mortgages across the banks. We've seen that creeping up and it's something we're watching closely."

Last week, Mr Carney surprised many by playing down the chances of an imminent rise in interest rates despite fears of a growing house price bubble.

But he admitted the issue was the biggest current threat to the economy.

"The biggest risk to financial stability, and therefore to the durability of the expansion, centres on the housing market and that's why we're focused on that," he said.

Prices are currently rising at more than 10% a year across the country.

Analysis by Sky News has shown the number of £1m properties has doubled since 2008.

Earlier this month, the OECD think tank called on the Bank of England to impose measures to help quell rising house prices.

Both the coalition and Labour are committed to building hundreds of thousands of new homes.

However, construction still lags behind Government targets.

Housing Minister Kris Hopkins said: "In 2010 we inherited a broken housing market, but our efforts to fix it are working.

"We've scrapped the failed top-down planning system, built over 170,000 affordable homes, and released more surplus brownfield sites for new housing.

"We've also helped homebuyers get on the housing ladder, because if people can buy homes, builders will build them."

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Pig Hearts For Humans 'A Step Closer'

By Gerard Tubb, Sky News Correspondent

Doctors have made a breakthrough in research that could lead to animal organs being transplanted into humans within the next 20 years, according to a leading British scientist.

Experiments in America have proved a pig's heart can be kept alive inside another animal for more than a year using a combination of genetic modification and new drugs.

In controversial research at the US national medical research agency NIH, a team led by Dr Muhammad Mohiuddin transplanted the hearts of genetically engineered pigs into the abdomens of baboons and kept one beating for 600 days.

Anne Higgs says she would accept a pig's heart

Dr Mohiuddin said his research will "instill a new ray of hope for thousands of patients waiting for human donor organs".

Professor Chris Mason, from the department of biochemical engineering at University College London, called the development a big breakthrough.

"It is very early, it is not in man and it's not even in the position of a heart, but it's a huge step forward," he said.

With around 1,000 patients dying in the UK while waiting for an organ transplant, Professor Mason welcomes the prospect of farming pigs to produce organs on demand.

"We are talking 10, 15 or more years away," he explained.

"This is early proof of the concept that shows that a pig heart can be transplanted into a non-human primate and not be rejected."

Heart attack victim Anne Higgs has been waiting for a heart transplant at the Freeman Hospital in Newcastle for four years and says she would have no qualms about accepting a pig's heart.

"It's another grasp at life," she said.

"Yes I would take it, I would run all the way to the Freeman with that little heart."

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