Christopher Down, Chief Executive, Hearthstone Investments said,
“These figures from the Bank of England on the impact of the Funding for Lending show that despite the easing of credit conditions, the scheme has yet to translate into increased actual lending by the Banks. It may still be slightly premature to see the full effects of the scheme, but it is nonetheless apparent that banks are continuing to take a pragmatic and overtly cautious approach to lending.
“These stringent lending conditions continue to act as an impenetrable barrier for many who seek to get onto on the property ladder. However, those looking to capitalise on the forecasted upturn for the UK housing market in 2013 can still do so without having to buy now”.
“Using their ISA allowance, a SIPP scheme or investing directly, savers – including those looking to get a foothold in the residential property market – can invest in a residential property portfolio using the TM Hearthstone Residential Property Fund, which launched in July 2012. This means that those people who may be struggling to secure a mortgage can still capitalise on market changes and benefit from potential strong returns in UK residential property.”