transactions below the £250,000 threshold which would boost activity. But the loss of income for the government would be a crippling blow. Rob McCoy, senior product manager at PMS, believes the government should go further and offer an incentive for home- owners to sell to a first-time buyer rather than a professional landlord. Meanwhile Ian Balfour, chief executive of packager Solent Mortgage Services, says it is even more basic than that. Property supply is key. “At the heart of the issue in the UK, we have a basic lack of housing stock from which stems the cycle we are witnessing today,” he says. “Regardless of a more active first-time buyer market, prices are still too high because property is scarce. “The government and regulator need to
help provide the environment, base foundation and structure to get this market moving from new builds to providing homes for its citizens. More micro than macro intervention is needed.” On a micro level there are things that could help the stuttering market. There are a few vociferous commentators in the industry banging the new-build drum. After all, to rebuild a market you first need to build the stock to sell. The government says England needs around 230,000 extra homes a year to meet demand but the Department for Communities and Local Government says only 124,000 new homes were completed last year. Support at this end of the scale, coupled with commitment from lenders to offer and complete on higher LTV
mortgages to people willing to buy new homes and flats would help first-time buyers onto the ladder, kickstarting the cycle. It should also encourage spending into other areas of the economy which would feed confidence.
Consensus among intermediaries also suggests that finding a way of helping the self-employed must be pushed further up both government and lenders’ agenda. There is no foolproof answer to the
problems facing the UK’s housing and mortgage woes but those closest to the market and the people in it day-to-day should be given more thought. There are big problems to worry about at home and abroad but fixing the little things would help. Often small steps lead to great adventures. n
Ian Balfour, chief executive, Solent Mortgage Services
“Lenders and intermediaries are having to contend with a continually rolling programme of MMR, RDR, UK and EU legislation;
consumers with price increases in food and energy, rising unemployment, house prices in the doldrums, UK and worldwide recession, media negativity; and we have worldwide political ineptitude and lack of leadership, especially around the European euro debacle. The list goes on.”
Dale Jannels, managing director, All Types of Mortgages
“The simplest answer, without intending any criticism, is the pressure that lenders appear to be under from the regulator. Customers
want to borrow. Lenders want and need to lend. The regulator will rightly regulate and all parties need to work together to unblock market needs for the benefit of all. Advisers need a confidence boost rather than continued negativity.”
Andy Golding, incoming chief executive, OneSavings Bank
“The single biggest problem jamming the housing and mortgage market is that people believe that mortgages are too difficult to get
and don’t understand the options they have to protect themselves against changes of circumstance. So fear of rejection and fear of consequences of acceptance.”
Andrew Montlake, director, Coreco
“There is no absolute panacea for the housing market at present and there are several interlinked issues that need to be addressed.
Whilst help for first-time buyers needs to continue, looking at stamp duty changes would be a good place to start, together with a gradual easing up of mortgage credit would both help to alleviate the logjam. Perhaps the main issue continues to be the difficulties faced by first-time sellers who find themselves unable to sell and move on which would free up much needed housing stock.”
mortgage introducer NOVEMBER 2011 39
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