In October 2012 we wrote about the new-fangled Funding for Lending Scheme which allowed Banks to access cheap money in return for increasing the availability of mortgage funding for house purchases. For an economy that had become addicted to cheap credit in the run up to the financial crisis this hair of the dog remedy raised a few eye brows. Fast forward to the beginning of 2014 and it appears that the Bank of England has decided that a period of sobriety is called for to prevent another housing market binge. The FLS housing spigot was quietly turned off in December with resources being refocused on lending to business. From April Lenders come under stricter Regulation which will see them have to verify borrowers’ incomes, undertake an affordability assessment (including stress testing against interest rate hikes) and restrict interest only mortgages to those who have a credible strategy to repay capital. Those who were looking forward to partying on the back of higher house prices will have to think again.