Liberal Democrats in Business

News and views from the Lib Dem Treasury, Trade and Industry Teams and Business Forum

Soaring Lending Fuelling Unsustainable Housing Bubble - Cable

2.28.54pm GMT Mon 1st Mar 2004

Commenting on Bank of England figures on lending to individuals out this morning Vince Cable MP, Liberal Democrat Shadow Chancellor, said: "Soaring mortgage lending is fuelling an unsustainable house price bubble."

"Large numbers of people are gambling on the house price boom - a gamble they may regret if house prices start to fall."

"The Chancellor is failing to take responsibility for the level of lending by banks. It is time for the Government to take action to protect ordinary homeowners against irresponsible lending."

ENDS

Notes to editors;

This morning's Bank of England 'Lending to Individuals' figures show total net lending up 10.6% on the year, and lending for mortgages up 14.4% on the year.

The number of house purchases approved rose from 96,000 in January 2003 to 110,000 in January 2004.

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Related News Stories:

Tue 1st Nov 2005:

[Increase In Repossessions Show Housing Bubble Is Close To Bursting - Cable]

Tue 2nd Nov 2004:

[Banks Must Stop Fuelling The Borrowing Boom - Cable]

Mon 14th Jun 2004:

[ODPM House Prices: Brown Must Tackle Reckless Lending - Cable]

Tue 4th May 2004:

[Reckless Lending Fuelling House Price Boom - Cable]

Thu 29th Apr 2004:

[Homeowners Must Be Protected From Irresponsible Lending - Cable]

Mon 19th Apr 2004:

[Irresponsible Lending Fuelling House Price Bubble Says Cable]

Wed 28th Jan 2004:

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

Fri 23rd Jan 2004:

[Retail Sales Figures Fuelling Consumer Debt - Cable]

Thu 29th May 2003:

[Housing Market Bubble In Danger Of Bursting For Third Time In A Generation - Cable]

Related Press Articles:

Sun 1st Feb 2004:

[A Debt and Housing Bubble]

Wed 5th Nov 2003:

[Housing Bubble Set To Burst]

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