Government can't ignore risk of housing crash - Cable

9.04.00am GMT Wed 12th Dec 2007

Commenting on figures released by the Council of Mortgage Lenders showing that interest repayments swallow up 20.6% of first-time buyers' monthly incomes, Acting Liberal Democrat Leader and Shadow Chancellor, Vince Cable MP said: "Ministers can no longer ignore the possibility that millions of people could face the misery of negative equity and repossessions if the housing market turns.

"The Government must work with the major banks to put in place preventative measures to stop a housing crash.

"This could include working with the banks to keep families who are in arrears in their homes through properly regulated leaseback, or shared ownership schemes.

"The Government should incorporate house inflation into CPI and ensure that banks lend responsibly rather than behave like casinos.

"We need urgent action now to stop misery for millions."