Bradford and Bingley Rescue was necessary but underlying housing crisis must be tackled

10.00.00am BST (GMT +0100) Tue 30th Sep 2008

Commenting on the nationalisation of the bank Bradford and Bingley announced today by the Government, local Lib Dem MP Dr Evan Harris, said "The best outcome would have been a private sector purchase of the bank. But with Bradford and Bingley as well as Northern Rock now state-owned, the Government should use its large stake in the mortgage market to properly address problems in that sector for low-income families."

"There are no winners from these events and we must consider the uncertain future of the staff of Bradford and Bingley", said Dr Harris, whose Oxford West and Abingdon constituency includes the troubled bank's Summertown branch.

Dr Harris also spelled out concerns about how a slump in house building will impact badly on those in need of affordable housing as well.

"Many of my constituents are without suitable housing while a real decline in social housing linked to private development is taking place - £8bn of Government money meant for that purpose has not come through, for instance."

"Instead of trying to prop up the housing market and keep house prices artificially high, Labour should launch a major programme of affordable house building. Alistair Darling should be meeting with housing associations and councils as soon as possible, to discuss how they can buy property and land at the discounted rates now available and make a real difference to the people that need it."