House Price High Calls For Cautious Measures - Cable

11.23.19am UTC (GMT +0000) 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.