A funny August. It was a month of foreboding prognostications, led by a collapsing housing market to be spotted on the darkening horizons.

This last month was the graphic 'stock market' collapse, led by what was described as the sub-prime lending market on mortgages in America dragging the British stock markets down.

The financial and business press presented us with supplements to tell us what 'sub prime lending' markets were.

In Bramley, we've known all about 'sub prime lending markets' for years. They are the doorstep money lenders, the adverts for
instant loans – all offering quick cash deals that you couldn't obtain from an ordinary high street bank.

As I revealed in the House of Commons five years ago, many doorstep lenders and direct loan companies were actually tied into and owned by the biggest banks and money lending outfits – the connections were just kept well-disguised.

Many of those doorstep lenders charge massive rates of interest. The highest I came up against, on a loan of £250 to a mother needing a replacement washing machine, was an interest rate to be paid back weekly of 380 per cent!

In other words 'sub prime' doorstep lenders were massively overcharging people into deep, often unrepayable debts.

That's why I worked in Parliament to bring in a new Consumer Credit Bill to regulate this lending market. Trading Standards now employ specialists to track down and prosecute rip-off doorstep lenders (including targeting operators in Leeds) and with some success.

Clamping down on the 'sub prime' lenders in law and in practice in the last 12 months has made a real impact.

Here in Britain we had headlines of stock market collapse for a few days in the wake of the US experience.

Yet today the UK stock market is actually the same as it was at the beginning of August and what was lost in value and pension funds has been regained.
Two lessons could be learned. Sub prime lending needs properly regulating – as we are doing to loan sharks in Bramley and Leeds.

And, more radically, by investing in more publicly provided homes to rent (by allowing Councils to build homes) and breaking the 'home ownership at all costs' approach.

This would actually rebalance the economy. Leeds Council could take the lead by using the capital raised from its share of the airport sale to build much needed homes to rent out – not least on the brownfield sites already identifiable and available in West Leeds.