Housing Market Bubble In Danger Of Bursting For Third Time In A Generation - Cable
12.00.00am BST (GMT +0100) Thu 29th May 2003
The housing market is in danger of completing a full cycle of boom and bust for the third time in a generation, Vince Cable MP, Liberal Democrat Shadow Trade and Industry Secretary said today.
His statement comes in response to figures released today by the Nationwide Building Society showing that mortgage lending remained strong in May.
Commenting, Vince Cable MP, said: "For the third time in a generation, there is a danger that the housing market will complete a full cycle of boom and bust."
"Already this year there has been an astonishing £32 billion of advances made to existing homeowners representing equity withdrawal. Taken together with record levels of debt, lower disposable income and weak pay growth, any downturn in the housing market will prove to be severe for both heavily mortgaged homeowners and the economy."
"The Government should act now to rein in the practises of more aggressive lenders."
"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 and help first time buyers".
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