The cost of living is starting to create a trickle down effect that is affecting not only those with council house mortgages but also those in the middle class. Although the markets are focusing on the sub prime crisis, regular home owners are also being affected as well as council house mortgage holders. The cost of living and the lowering of property values has created quite a problem for many, regardless of their income levels.
The Prime Minister stated in an editorial in the Sun that people “know that the Labour Government has got the economy through tough times in the past. And we have taken the tough decisions which will see us through again.” He mentioned that Labour had worked hard to build a record of stability over the past ten years. “And my guarantee to the British people is that we will hold on to that stability in these latest tough times.”
Vince Cable, the Liberal Democrat Treasury spokesman, said of the consumer credit figures: “Following recent sharp rises in repossessions, this is further evidence of a looming crisis in the housing market. Many people are feeling the consequences of huge levels of personal debt.”
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