In his speech at the Liberal Democrat conference Cable said: ‘Home ownership, which spread wealth for generations, is no longer a realistic prospect for younger people with moderate means.

‘To put this right, we must end the stranglehold of oligarchs and speculators in our housing market. I want to see fierce tax penalties on the acquisition of property for investment purposes, by overseas residents.’

Along with tougher penalties on foreign home buyers, Cable also called for measures to stop ‘the blight of absentee second home ownership, which devastates local economies and pushes young people away from the places where they grew up’.

The Liberal Democrat leader, who was elected in July, announced plans to replace student fees with a graduate tax in an attempt to make amends for the party’s previous U-turn on tuition fees during the 2010 election.

Cable said: ‘We all know we suffered grievous political harm from making a pledge seven years ago on tuition fees that we couldn’t meet.’

He went on to say that although student debt repayments operate like a tax, ‘we cannot escape the fact it isn’t seen as one…the worry about debt does cause students and their families real concern’.

‘I have therefore launched a review, led by former Cambridge MP David Howarth, which will recommend options for reform, including a graduate tax. We will consult on the outcome through the party’s policy process, and I aim for its results to come before you at a future conference.’ Cable said.

He also reiterated his commitment to previous Liberal Democrat policies such as a penny on income tax for the NHS.

My Vision for Britain – Vince Cable’s speech is available here. 

Report by Amy Austin