Cable says houses are unfordable to middle earners

Cable says houses are unfordable to middle earnersVince Cable, UK's Business Secretary has warned that the housing prices are high in the UK and houses are unaffordable for the middle earners in the country.

Cable has said that ordinary families will not be able to buy the houses in the country as the market faces risk of a housing market 'bubble'.

UK's Chancellor George Osborne has said that it is planning to expand the Government's Help to Buy scheme, which is aiming to help revive the housing market, until the year 2020. Under the scheme, people in the UK will be able to buy a home with a 5 per cent deposit and the UK Government will act as guarantor for a mortgage for an extra 20 per cent of the value of the property. The Bank of England has indicated that it is watching the UK's housing market carefully for signs of overheating as the prices of houses rise and mortgage lending increases in the country.

Mr Cable said "The fundamental problem is a chronic imbalance between supply and demand. A recovering mortgage market is just fuelling demand again. A family on an average income is nowhere near able to afford a house at the average price."