I agree re QE. It was vital initially. Financial crisis in 2008 went well beyond our banking system to infect UK’s major pension funds, investment schemes, et al, as banks passed off complicated debt-riddled investments via CDOs. Whether QE went on too long as it ultimately did little for many ordinary citizens (as you note), is another question.
Now we’ve a number of challenges affecting LLOY’s, some inescapably related to Brexit’s uncertainties, but not all. Obviously, growing concerns over President Trump escalating global trade wars have a wider impact.
A looming problem is UK’s vastly over-inflated house prices & falling sales. Over-inflated & beyond the reach of many ordinary citizens on average incomes not down to free market economics, but by vested interests. They’ve interfered in free markets for too long by pumping up prices. Until UK’s property markets are fixed, this will be a growing threat to LLOY’s recovery anytime soon.
For eg., from my observations in areas like Staffordshire & South Cheshire, new build sale completions are increasingly heavily reliant on 20% discounts via tax-payer funded “Help To Buy” scheme. Other areas are seeing similar issues.
Pertinent to note that businesses like Carpetright (just issued a 3rd profit warning in 4 months), Bensons for Beds, Harveys Furniture, et al, are all reporting drastically falling sales. Whilst some of that ties-in with a general downturn seen across UK’s High Streets, some of it undoubtedly relates to a drop in UK house sales.
Earlier this year PropertyWire reported that UK property sales failing to reach completion after proceedings started reached 38.8%. Highest level in a decade. Sorry I can’t add the link (Google is your friend), as this page goes blank if I try to.
These are all red alert warning signals of likely further house price corrections ahead & give us reason to remain cautious. I’m not saying Brexit’s uncertainties aren’t a significant factor, but for ordinary Britons of various backgrounds, some of the roots of these problems go back to a time well before Brexit.