Speculation over end to coalition follows doubt over Help to Buy
Following on from criticising the Government's flagship Help to Buy Scheme, business secretary Vince Cable has said the coalition could break up before 2015.
September 17, 2013
According to The New Statesman, Cable spoke about ending the coalition at a fringe meeting yesterday evening.
He said: “It’s certainly possible. We are not at the stage of talking about that process. It is obviously a very sensitive one. It has got to be led by the leader. We have not yet had those conversations.”
The comment comes days after Cable criticised the Government’s Help to Buy scheme, saying it could be damaging and unsustainable.
Property Wire, the real estate news website, said that Cable sited “serious housing inflationary pressures” in some parts of the country.
“We should certainly think about how it should come into effect, indeed whether it should come into effect, in the light of changing market conditions. We don’t want a new housing bubble,” Cable said in an interview with Sky News.
“Certainly in London and the South East, in the north east of Scotland, in other areas, there are serious housing inflationary pressures,” he added.
Chief Secretary to the Treasury Danny Alexander disagreed with the comments, saying “We are a million miles away from a housing bubble in this country.”
“There are vast numbers of young people in work who could afford the monthly payments on their mortgage but simply can’t afford the deposit they need to get a mortgage.
“The whole point of the second phase of the Help to Buy scheme is to help those people fulfill their aspirations and in doing so ensure there is more construction activity, that there are more new homes being built,” he added.
Paula Higgins, CEO of Homeowners Alliance said: “We welcome any measures from the government that aim to increase homeownership and this provides practical help for those who find it difficult to get the massive deposit needed to to get on the housing market.
“But we are concerned that it could fuel a housing bubble, especially when the second part of the scheme opens. The government is in danger of just papering over the cracks without doing anything to solve the long term problems in the housing market and potentially making them worse.”