Liberal Democrats in Business

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

House Prices A "Credible Threat" To Our Economy

12.05.02pm BST (GMT +0100) Tue 6th Apr 2004

Commenting on Wednesday's Treasury Select Committee report on the 2004 Budget, showing that some commentators think there is a significant risk of a house price crash, Norman Lamb MP, Liberal Democrat Member of the Committee said: "It is clear that many independent commentators differ from the Chancellor on the potential threat to our economy from rising interest rates, high house prices and consumer debt. "The Deputy Governor of the Bank of England has acknowledged that these factors pose a 'credible threat' to our economy."

"The views of the many experts contradict Gordon Brown's complacent attitude towards consumer debt, high house prices and rising Bank of England interest rates. The IMF is also now warning that almost half of house price booms end in tears. "Mr Brown should acknowledge now the potential threat of house price boom and bust is similar to the early 1990s. "The Budget failed to take responsibility for the level of lending by banks. It is time the Government took action to protect ordinary homeowners against irresponsible lending."

[Print this story]
[Previous story]: Falling Manufacturing Figures Reveal Imbalanced Economy (Mon 5th Apr 2004).
[Next story]: Latest Trade Figures Confirm Imbalanced Economy (Thu 8th Apr 2004).
[Other news stories from April 2004 (28)]

Related News Stories:

Mon 14th Jun 2004:

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

Mon 9th Feb 2004:

[Booming House Prices And Weak Manufacturing Leaves Economy Imbalanced - Cable]

Wed 12th Nov 2003:

[Inflation Report: House Prices Threatening Economy]

Fri 31st Oct 2003:

[House Prices: Rein In Irresponsible Lenders]

Fri 3rd Oct 2003:

[House Prices: Nosedive Warnings Must be Taken Seriously]

Printed and hosted by Prater Raines Partners, 82b Sandgate High Street, Folkestone CT20 3BX.
Published and promoted by Liberal Democrats in Business, 4 Cowley Street, London SW1P 3NB.
The views expressed are those of the party, not of the service provider.