Liberal Democrats in Business

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HOUSE PRICE HIGH CALLS FOR CAUTIOUS MEASURES - CABLE

11.26.29am GMT Thu 26th Feb 2004

Commenting on this morning's Nationwide house price figures and the British Bankers' Association lending figures Liberal Democrat Shadow Chancellor Dr Vincent Cable said: "The house price bubble is fuelling the credit boom. The Bank of England accepts house prices are based on irrational speculation. With household debt close to the £1 trillion level the problem is potentially dangerous.

"First time buyers are now being either priced out of the market or are being forced to take on loans at risky levels.

"It is time for the Government to take action to protect ordinary homeowners against irresponsible lending."

Ends

Notes to editors.

1. Today's Nationwide house price figures showed the strongest increase in house prices since April 2002.

2. Today's BBA figures showed the rise in net lending for consumer credit above average, and approvals for house purchases 11% higher by number and 29% higher by value than a year before.

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[Other news stories from February 2004 (28)]

Related News Stories:

Thu 17th Jun 2004:

[Brown Still Failing To Tackle Precarious House Price Bubble]

Wed 12th May 2004:

[Brown Must Act On House Price Boom]

Tue 4th May 2004:

[Reckless Lending Fuelling House Price Boom - Cable]

Mon 19th Apr 2004:

[Irresponsible Lending Fuelling House Price Bubble Says Cable]

Wed 4th Feb 2004:

[House Price Hike Will Hit First Time Buyers]

Thu 29th Jan 2004:

[Homeowners Need Protection Against House-Price Boom and Bust - Cable]

Wed 28th Jan 2004:

[Bank Lending Continues To Fuel House Price Bubble - Cable]

Fri 6th Jun 2003:

[Cable Calls for Tough Measures]

Thu 24th Apr 2003:

[New Measures Needed To Stop "Boom and Bust" - Cable]

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