Government Must Take Action on Housing Market

12.00.00am BST (GMT +0100) Tue 14th Jun 2005

Vincent Cable MP speaking in Parliament

Commenting on figures from RICS UK Housing market survey, June 2005, which shows that the housing market is continuing its downturn, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"It is difficult to predict the property market, but these figures again reinforce the possibility that the housing market bubble may burst.

"The Government must be on its guard. In the current context it is irresponsible for the Government to encourage individuals to put more of their private wealth in to a volatile market. Whether this be in the form of SIPPs, which also opens up a huge tax loophole or in the form of the new shared equity schemes which have substantial risks if the market rises or falls dramatically.

"The Government needs to be proactive on this. It should instruct the competition authorities to look at coverage of mortgage insurance which is an imperfect and expensive market."