Housing sector set for “painful correction”

The UK’s housing market is set to experience a “painful correction”, according to the Liberal Democrats’ economic spokesperson Vince Cable.

Mr Cable is convinced that debt management problems are worsening for many thousands of families and the housing sector is suffering as a result.

An abundance of easily accessible credit has seen households across the country accumulate large amounts of debt that they are now finding it difficult to service and to pay off, the opposition MP has claimed.

“Homeowners are having to deal with increased interest payments as their fixed-term mortgages come up for renewal. Large numbers of households simply cannot afford to pay,” said Mr Cable.

He added that an “epidemic of repossessions” is likely unless the government can take the steps necessary to ease the problems in the property markets.

Earlier this week, the Cheshire Building Society urged people struggling to become debt free to seek professional advice before their money problems become unmanageable.