The Liberal Democrats have reacted to last week's Nationwide house price index showing a renewed acceleration in house prices.
Vince Cable MP, Liberal Democrat shadow chancellor, says: “This is further proof that there is an unsustainable bubble in the housing market. Soaring house prices are a headache for Gordon Brown and make an interest rate rise all the more likely.
“People who are borrowing at the edge of their means may get clobbered in the next few years, if rate begin to rise steadily. The Bank of England has warned in the last week that homeowners would be brutally exposed if there were a serious downturn in the housing market.
“The Bank of England alone cannot deal with the house price bubble - the Financial Services Authority needs to supervise lending to protect homeowners.
“It is time for the government to take action to protect ordinary homeowners against irresponsible lending.”