All of these moves were house price favourable but there was another subsidy provided for the banks that as ever was badged as being for small business lending but was in fact likely to find its way into the housing market. This is the Term Funding Scheme.
The Term Funding Scheme (TFS) is designed to reinforce the transmission of Bank Rate cuts to those interest rates actually faced by households and businesses by providing term funding to banks at rates close to Bank Rate
So far it has provided some £31.37 billion of cheap funding to UK banks, which no doubt will in a “surprise” find its way to the housing market.
Can foreign buyers rescue it one more time? I am not so sure as I have pointed out before although the fact that Bitcoin has been rallying again ( US $977 as I type this) means that money is back flowing out of China. The first time buyer house price to earnings ratio in London has dipped slightly but to a rather extraordinary 10.1. The number for the whole country at 5.3 is just below the all time high of 5.4 which came of course just before the credit crunch hit. '
Mark Carney has a lot to answer for but no doubt his ex-colleagues at Goldman Sachs will give him support.