Liberal Democrats in Business

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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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