House Price Hike Will Hit First Time Buyers

4.29.00pm GMT Wed 4th Feb 2004

Liberal Democrat Shadow Chancellor Dr. Vincent Cable

Commenting on news that the average house price for first time buyers has breached £100,000 for the first time, Liberal Democrat Shadow Chancellor Dr. Vincent Cable said: "Anyone with an income less than £30,000 a year simply cannot contemplate buying a £100,000 first home using sensible earnings to loan ratios. Especially in the South East of England, first time buyers will struggle to get on to the housing ladder."

"This rise in house prices is a bubble that could well burst, leaving many in negative equity if they have to sell their homes."

"This is precisely why the Liberal Democrats yesterday warned against unsustainable consumer debt on both secured and unsecured loans."

"The Bank of England interest rate is a very blunt instrument for what is an intricately complex problem. Gordon Brown chooses to abdicate his responsibility to the public in tackling the debt problem, and hides behind the independence of the Bank of England."

"It is time for the Chancellor to come out of hiding and introduce more intelligent economic levers to control, at the same time, the rise in house prices and consumer borrowing, and the decline in our manufacturing industry."