November 2007 we drew on the US experience to sound a note of caution about what we felt were unsustainably high house prices here in the UK. As the sub prime scandal unravelled we reported one Maine based mortgage expert as saying:-“I blame the banks and lenders for approving people for homes who had no business buying one in the first place”and “I blame homeowners for basically using the equity on their homes as an ATM machine.” Sceptics said at the time this was a US problem and irrelevant to the UK market. The rest is history. But what for the future? Once again we have looked across the Atlantic this time to find more up beat headlines. The US is normally ahead of us in the financial cycle but where it leads we tend to follow. Absent further convulsions in the Euro area there are signs that credit conditions will start to improve this side of the Pond next year and give the wider housing market a much needed shot in the arm.