From January 2011, if not before since mortgage lenders are not stupid, mortgages will get more expensive due to the closing of the Bank of England's Special Liquidity Scheme, and the already-yawning £300billion chasm between demand and supply for wholesale credit over the coming years. This doesn't come across to me as a good thing for the property market. Long-dated house price index put options might be worth adding to ye olde watchlist.
Mervyn is busy today, also implying openly that the Quantitative Easing program is currently only suspended, not closed, and is actually likely to be resumed. I still keep my neck out and say within 6 months they warm the printing presses up again for another workout. Anything to keep the government able to sell all those Gilts they need to issue in coming years, even if the BoE is still just about the only buyer...
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