Critics remain vocal against the Funding for Lending Scheme calling out for further time to pass to reveal if indeed lenders are offering the cheap offers to those in need of them most before calling the effort a success.  However, reports in the housing market are carrying a very optimistic tone as demand is expected to rise for mortgage lending.  The recent report of the Knight Frank/Markit House Price Sentiment Index revealed that 8 of the 11 UK regions have households expecting an increase in their property values in 2013.

Tim Moore, senior economist with Markit, said, “Households are increasingly conscious that the Bank of England’s Funding for Lending Scheme has the potential to boost the UK property market in 2013.

Evidence that the expectations could be right have come from the House Price Index from Rightmove which revealed that the number of new sellers has climbed 22% in comparison to last year and there was a 27% increase in traffic the first two weeks of January to their Internet site.

Mike Shipside, housing market analyst at Rightmove, remarked, “There is an increasing body of evidence suggesting genuine ‘green shoots’ of recovery after a prolonged period of the housing market bumping along the bottom.

“This month’s average asking price of £229,429 is only 0.4 per cent below the highest January figure ever recorded, which was £230,428 in January 2008.

“The slow recovery in prices over the past four years will be welcome news to many of those who bought at the peak and whose equity was undermined. This will help those with the requisite deposit to think about trading up or moving on, especially in better-performing southern regions.”