The Liberal Democrats say that a Treasury Select Committee report on the 2004 Budget showing commentators' concerns over a housing market crash demonstrates the potential threat it poses to the economy.
Norman Lamb MP, Liberal Democrat member of the committee, says: “It is clear that many independent commentators differ from the chancellor on the potential threat to our economy from rising interest rates, high house prices and consumer debt.
“The deputy governor of the Bank of England has acknowledged that these factors pose a 'credible threat'.
“The views of the many experts contradict Gordon Brown's complacent attitude towards debt, house prices and interest rates. The IMF is also now warning that half of all house price booms end in tears.
“Brown should acknowledge now the potential threat of house price boom and bust is similar to the early 1990s. It is time the government took action to protect ordinary homeowners against irresponsible lending.”