View more on these topics

Housework still not thorough enough

Peter Williams MS blog

The Funding for Lending Scheme continues to be a bone of contention; with the Bank of England’s figures released earlier in the week merely adding further fuel to the flames of discussion.

Net lending by FLS participants stood at £1.6bn, which was slightly stronger than the previous quarter of £1bn, helped in part by the addition of a new participant – bringing the current total to 41.

Nevertheless, when looking at the bigger picture, net lending on the whole has remained reasonably flat since the scheme was introduced.  

Although these figures may suggest that the FLS has not stimulated the market as much as some had originally hoped, perhaps the most valuable aspect of the scheme in practice has not been the direct support it has provided but rather the impact it has had on confidence and liquidity in funding markets more generally.

The extent of which cannot, unfortunately, be expressed in numbers.  

When the extension of the scheme was announced earlier in the year we expressed our concern that the Bank’s revised focus towards SMEs could hinder the possible advancements of the mortgage market.

However, this week’s figures show that net lending to individuals and the number of mortgage approvals for house purchase have in fact both picked up in the second quarter of the year while, interestingly, net lending to SMEs was negative.  

Obviously this is encouraging for the mortgage sector but it shows that government cannot take a one size fits all approach when it comes to promoting economic growth.

The varying experiences of different sectors under the FLS highlight the need for an overarching housing strategy. The current disjointed initiatives are promoting staggered growth, and if the different areas of the market continue to progress at different rates then it is extremely unlikely that we will arrive at a harmonious market any time soon.


Ian Smart MM grey 250x255

Life is like a box of chocolates…

Sometimes it is the more quirky statistics that make people sit up and take notice. We recently carried out research that revealed people were reluctant to take out protection insurance, due to cost. No surprises there. However, they are quite happy to spend £17 on their pets, £28 on digital television and munch their way […]


Shawbrook sets up fast-track bridging team

Shawbrook Bank has launched a short term lending team, which will exclusively manage those deals that require a fast turnaround. The new team will be made up of three lending managers and a lending officer and has been formed after an increase in demand for short-term loans. As Shawbrook looks to bring more bridging products […]


Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.


News and expert analysis straight to your inbox

Sign up