“We can’t know how bad it will get” is the summary given by Housing Minister Caroline Flint MP in a document prepared for the weekly cabinet meeting in Downing Street.

The document, entitled “Caroline Flint - speaking notes”, had a sticker attached to the notes which said “Papers for cabinet meeting 13 May 2008″. The photographs of the documents were enlarged by Sky News following Ms Flint arriving in Downing Street.

In the photographed notes, Ms Flint said that “at best”, house prices are set to fall by 5% to 10% and that housebuilding was “stalling”. “New starts are already down 10% from a year ago. Housebuilders are predicting further falls,” the notes warn.

Also, the rise in mortgage defaults were highlighted, but did stress that the 2007 figure is “still only around a third of that in 1991″.

In conclusion, the notes said: “We can’t know how bad it will get. But we need to plan now to put in place effective measures against the risk that it does get worse and to prepare for the up-turn.”

“But it is vital that we show that at this time of uncertainty we show that we are on people’s side.”

Bookmark with...

Hide Sites