Less Lending Leads To More Renting

So despite giving banks money in the form of the Funding for Lending Scheme (FLS) to encourage them to lend for mortgages and small businesses lending has actually gone down. The banks have not seemingly changed their criteria and may well have tightened them. So I wonder what's happened to all the government cash they've been given? No doubt the banks will be dishing out great big bonuses to their staff for doing so well this year, but what are they doing so well at? Hoarding our money that the government gives them to lend and help get the economy moving in the right direction.

This isn't the only reason why people aren't buying houses although the ability to get a mortgage is a key part. Stability and knowing that you will have some secure income to pay off a mortgage is key and with many more people being forced to take on part-time work and many of those in full time jobs feeling vulnerable to cuts at any time it is little wonder that the housing market is so flat. Maybe we are moving to more of a European model where home ownership isn't the norm and renting is far more prevalent. Just because it's not what the UK has traditionally been used to doesn't mean it's bad, it's just different. And we'll all need to get used to differences ahead.