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Will the recovery in the UK housing sector prompt UK banks to release more liquidity?

As prominent UK builders slowly but surely continue to confirm a stabilisation and potential recovery in the sector all eyes are now turning to the UK banking sector and the mortgage companies, who have been very quiet for some time. Just a few weeks ago there was an indication that UK banks were withholding liquidity because they did not believe there was substance in the UK housing market. Hopefully, if the indications by Persimmon Group and Bovis Homes are proved correct and reiterated by other housebuilders we should see the UK banking sector get back on track?



There is a feeling that there is substantial liquidity in the system and it should be made available in the short to medium term to feed a newfound appetite for UK property. If for some reason the UK banks are still reticent and unwilling to pump more money into the system there is the potential to cut dead a potential recovery in the UK housebuilding sector which could drag us all the way back to the bottom of the market again.



The ball is most certainly back in the court of the UK banking sector but what they do with it at this point is anybody's guess!

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