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    The UK’s housing sector is heading for "serious grief", the Liberal Democrat economic spokesperson Vince Cable has claimed.

    Mr Cable is convinced that the ongoing housing sector slump will be worse than many analysts are currently anticipating and will be very difficult to alleviate.

    He has suggested that the government should oblige creditors to adhere to a strict code of conduct in order to avoid seeing large scale repossessions across the country.

    "I think the government is going to struggle with this combination of high inflation, low growth and potentially increased unemployment for several years," Mr Cable told myfinances.co.uk.

    Meanwhile, chancellor Alistair Darling has urged consumers not to dwell too much on the potential of the economy going into recession.

    According to the Council of Mortgage Lenders, its members handed out £6 billion less in home loans last month than was the case in May of last year as the housing sector slump goes on.

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