Lib Dems slam government for a "lack of action" on house prices

Vince Cable has accused Gordon Brown of failing to act on house price rises.

14:31 31 May 2004

The the Liberal Democrats have accused Gordon Brown of failing to act on house price rises.

Figures from the British Bankers' Association show that in April there was a record net rise in lending of 6.4 billion.

Commenting on the association's figures Liberal Democrat shadow chancellor Vince Cable blamed the chancellor's lack of action over recent months for the unstable nature of the market.

He said: "Rising bank lending is recklessly fuelling the house price boom. The housing market will become increasingly unstable as first time buyers are priced out."

"Large numbers of people are gambling on the house price boom - a gamble they may regret if house prices start to fall or interest rates continue to rise.

Mr Cable called on the government to take stock of matters and act now: "It is time for the government to take action to protect ordinary homeowners against irresponsible lending."

The British Bankers' Association figures also revealed that the average approval for house purchases rose again to 112,400.