Liberal Democrats in Business

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Irresponsible Lending Fuelling House Price Bubble Says Cable

9.10.00am BST (GMT +0100) Mon 19th Apr 2004

Commenting on the RICS housing market survey out tonight Vince Cable MP, Liberal Democrat Shadow Chancellor, said: "There is more and more evidence of 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 or interest rates rise."

"Many of borrowers will find themselves in negative equity if the housing market turns down and interest rates rise."

"The Chancellor has 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."

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