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Consumer debt in Sutton reaches £3bn- Burstow
July 30, 2004 4:15 PM
Consumer debt in Sutton has reached a breathtaking £3 billion, the equivalent of 12,000 Rolls Royces. Following news yesterday from the Bank of England that the UK debt mountain has reached the trillion pound barrier, local MP Paul Burstow, has revealed what this means in terms of local consumer borrowing.
80% of the debt is secured against house prices, which the Governor of the Bank of England believes to be seriously overvalued. Local home owners are acutely effected, with house prices in Sutton - traditionally a more affordable London borough - at such a high, and continuing to rise.
Paul Burstow, MP for Sutton and Cheam, expressed concern for Sutton consumers' growing debt mountain:
"The ratio of debt to income amongst local consumers is at unprecedented heights. With house prices in Sutton at a staggering high, and continuing to rise - local people are forced to borrow more and more to keep up with this boom in house prices and first-time buyers are being priced out of the market."
"A downturn in the economy could lead to serious financial difficulty for many. The Government must take action to provide incentives to promote saving rather than debt and protect local homeowners against irresponsible lending."
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