Hi Brett S I think you're right about inflation - for sure! I think that is the real indicator to watch, as you say. And cutting rates too fast and too far right now will only fuel the same kind of debt race we saw in the US that led to the whole sub-prime fiasco, which is the last thing we need! So, in my view, it's good to see the BoE and Euro central bank staying cool - at least for now. The Euro rate will surely have to come down soon or it will threaten eurozone exports even more than it already is.

I have just been caught by an inability to get a further advance to extract some added value from a house I have just bought whose yield is poor but I bought in the expectation of good capital growth as well as adding value by a high quality refurbishment. At purchase PIMS lent me 90% based on 100% rental coverage at 5% in May and now their lending policy is 85% LTV with 125% coverage at 5.75%. Luckily I can get my income from further advances of some of my Northern properties but it leave £20k locked in that I had earmarked for further purchases and I am on a 3 year penalty deal with PIMS/Mortgage Trust (which I gather is the same money as Paragon, with whom I have all my other loans). A nuisance but not a major showstopper and conditions may have eased by February when I can first apply.