So we are told that house sales have risen to their highest level in five years. Reports suggest that this is partly due to loans being easier to obtain.
The Funding for Lending scheme was launched in mid 2012 aims to give up to £60bn to banks and building societies on the basis that they borrow cheaply if they lend the same amount out to businesses and individuals. However are any statistics available to see just how much this scheme is affecting the market?
As far as the commercial property market is concerned however we are not seeing much evidence of support resulting in businesses purchasing industrial units or office buildings. Ok perhaps the lending is supporting cash flow for businesses acquiring stock or investing in other aspects of the company operation but we certainly have not seen any hard evidence that this is happening.
Whilst the Bank of England are expecting the amount of money available to lend to increase "well into 2013", figures released from the Bank this week (mid January) show that lending to businesses has continued to fall and apparently in the three months to November 2012, businesses borrowed £4 billion less than in the previous quarter.
So what does this say about banks attitude to businesses? Maybe mortgages on homes are a safer bet? Well with the comparatively higher fall in values in industrial units and office property since the peak of 2007 perhaps they should look at commercial property as a good bet !