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Housing market still dangerous

20 August 2004
The Liberal Democrats have once again criticised the government for its handling of the housing market, warning it is out of control.

Following yesterday's figures released by the British Bankers Association and the Council of Mortgage Lenders, Liberal Democrat treasury spokesman, Dr Vince Cable, has taken to the warpath once again for another attack on Gordon Brown's policies.

"The rise in mortgage lending by banks and building societies is continuing to recklessly fuel the housing boom," said Dr Cable.

The British Bankers Association figures show that mortgage lending rose by £5.7 billion in July.

"The recent interest rate rises do not appear to have deterred large numbers of people gambling on the house price boom," Dr Cable said.

"It is absolutely imperative that Gordon Brown takes action to protect ordinary homeowners against such irresponsible lending."

Dr Cable concluded by saying: "Further increases in interest rates or a fall in house prices will lead many into real financial difficulty."

The Council of Mortgage Lending figures show similar increases, with gross lending up three per cent on last month, and 13 per cent higher than in July 2003.
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