The results of the latest Bank of England Survey into Credit conditions look disturbingly like those seen when interbank lending seized up after the failure of Lehman’s. A barometer for trends in mortgage lending the Survey identifies various head winds to a market recovery including increased pessimism about the wider economic outlook, greater difficulty and higher cost to Banks accessing money market funds and negative sentiment about house prices. This means Banks being even pickier about to whom they will lend with a resulting tightening of credit scoring criteria. Until the Sovereign Debt crisis is resolved there is little chance of an improvement in accessing mortgage finance and, hence, a return to a normal housing market. In the meantime buy to let remains relatively buoyant due to low interest rates but investment buyers are driving a very hard bargain. Those who have been waiting in the wings for an up turn in the market this year will likely be disappointed.