Sir James Crosby’s reluctance to offer immediate solutions in his report on Tuesday was bemoaned by housebuilders and lenders, though politicians welcomed his cautious approach.

Vincent Cable, Treasury spokesman for the Liberal Democrats, agreed it would be a mistake to put more public money at risk. Ministers should not be “seduced by siren voices in the City” into using taxpayers’ money to underwrite new bank lending and “reinflate unsustainable house prices”, he said. The best the government could do was concentrate on helping families in danger of repossession.