New Measures Needed To Stop "Boom and Bust" - Cable
12.00.00am BST (GMT +0100) Thu 24th Apr 2003
Commenting on figures released today by the Council of Mortgage Lenders showing that gross mortgage lending remained strong in March, Vince Cable MP, Liberal Democrat Shadow DTI Secretary, said:
"There is a very real and imminent danger that for the third time in a generation the housing market will complete a full cycle of boom and bust."
"With over 50% of new lending going to those re-mortgaging property, the consequences - when the market does turn it could be very severe for both heavily mortgaged home owners and the economy."
"The spectres of negative equity and repossession would again darken the market, curtailing the boom in consumption fuelled by equity release. The Government's hard won reputation for economic stability would be at risk."
"The Government should act now to rein in the practises of more aggressive lenders. Furthermore, the size of land banks held by developers needs to be thoroughly examined and steps taken to bring some of the surplus land into production to ease demand."
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[Other news stories from April 2003 (9)]
Related News Stories:
Tue 2nd Nov 2004:
[Banks Must Stop Fuelling The Borrowing Boom - Cable]
Tue 4th May 2004:
[Reckless Lending Fuelling House Price Boom - Cable]
Mon 5th Apr 2004:
[Bank of England Caught Between Boom and Bust]
Thu 26th Feb 2004:
[HOUSE PRICE HIGH CALLS FOR CAUTIOUS MEASURES - CABLE]
Thu 29th Jan 2004:
[Homeowners Need Protection Against House-Price Boom and Bust - Cable]
Fri 6th Jun 2003:
[Cable Calls for Tough Measures]
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