View more on these topics

Cable says fall in house prices just the beginning

Liberal Democrat Shadow Chancellor Vince Cable believes the 2.5 per cent fall in house prices recorded by Halifax is only the start of a market downturn.

He says: “These figures confirm the market was overvalued and due a painful correction. But we are only at the early stages of a market fall. The wheels are clearly coming off Brown’s economic wagon.

“The Government is only just waking up to the problem, despite the fact it has been warned for years that there were great economic dangers from the bubble in the housing market, linked to exceptionally high levels of personal borrowing. For too long this Government did nothing.”

Cable says it is essential the Government provides liquidity to keep the flow of loans going but he insists banks cannot be allowed to wriggle out of losses.

He says: “It is right that priority should be given to maintaining this flow of credit however it must be made absolutely clear that this is conditional on banks accepting the losses from their bad loans and not offloading these on to taxpayers via the Bank of England.”

He says it is clear falling house prices are linked to the difficulties many borrowers are having paying debts and predicts an epidemic of repossessions unless the Government takes swift action.

He says: “Large numbers of households simply cannot afford to pay. There will be an epidemic of repossessions unless the Government forces mortgage lenders to moderate the process by offering shared ownership and payment holidays to keep people in their homes. Ministers should also consider how social landlords can be helped to buy up property to prevent a fire sale in the housing market.”

Conservative Shadow Chancellor George Osborne says: “Today is the day that millions of homeowners are confronted with the consequences of Gordon Brown’s economic incompetence. This week, instead of being able to help people, Labour are putting up taxes on millions, including the lowest paid in Britain. Gordon Brown failed to prepare, he borrowed in a boom and allowed the debt bubble to grow. Now the whole country is paying the price.

“Homebuyers will be astonished that Gordon Brown has so little to offer them today. The very least he could do for those struggling to get on the housing ladder is to adopt our plan to take nine out of ten first time buyers out of stamp duty – and we will support him if he introduces our measures.”


Carne Global strengthens technology team

Fund management adviser Carne Global has created two new divisions to be headed up by new appointees, Phil Kitto and Sunil Chadda.Chadda and Kitto have both joined from Citisoft, a London-based financial systems consultancy. They will head up the new alternative investment and wealth management technology and operational consultancy divisions.Chadda will act as head of […]

JP Morgan fund aiming to tap into global trends

JP Morgan has launched a fund that taps into the growing consumer and behavioural patterns in both Western and Eastern markets.The global consumer trends fund will be managed by Peter Kirkman. It invests in 40 to 100 stocks focusing on the three main investment opportunities of demographic changes, wellness and health and aspirations and luxury.Head […]

Ward calls for coordinated action by BoE and DMO

New Star chief economist Simon Ward has called for coordinated action by the Bank of England and Debt Management Office to extend up to £40bn of longer-term funding to banks to finance mortgage lending.Ward says there needs to be a further shift in the Bank’s market operations towards longer term lending. He also suggests widening […]

Hunt Review of FOS calls for crackdown on claims chasers

Lord Hunt has recommended the Financial Ombudsman Service introduces a case fee for vexatious claims put forward by claims chasers and called for a crackdown on the way they advertise. But despite calls from many advisers, Lord Hunt’s report, released today, states he does not believe a consumer fee or an appeals mechanism should be […]

Scheme pays explained

By Fiona Hanrahan, senior product insight and technical support analyst We’ve received lots of queries on scheme pays and when it can be used. This article explains how it works and the conditions which apply. What is ‘scheme pays’? If an individual exceeds the annual allowance (AA) and an AA tax charge is due, they […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm