It’s an age since Northern Rock roiled the financial markets but despite the passage of time and ultra low interest rates there are still scant signs of any improvement in the housing market. Transaction volumes remain historically low with mortgage finance severely rationed. Lurking in the background are the twin spectres of negative equity and the threat of increased borrowing costs. In his preface to Lloyds latest annual report Tim Tookey Group Finance Director said: “House prices fell slightly in the year and the proportion of the mortgage portfolio with an indexed loan to value of greater than 100% was broadly stable at 13%.” This implies a sizeable proportion of UK households in negative equity. Add to this the costs of moving and Lenders preference for low LTVs and it all points to a reduction in mobility for the UK workforce. Not a good thing if we are to have a sustainable recovery.