FR: The intermediary mortgage lending market saw strong growth in 2015 – is this something you see continuing?
This certainly will continue, yes. In fact, I believe that there is scope for up to three-quarters of all new mortgage business to come through intermediaries this year. This behaviour clearly reflects the growing need that consumers have for choice and advice – both of which mortgage intermediaries are well-positioned to provide. Add that to the flexibility that comes from dealing with an intermediary, who is often able to see customers far faster than a bank branch adviser, and who will take personal care of each individual case, and you can see why this means of accessing the mortgage market has continued to grow in popularity.
FR: What impact do you think the Government’s Right to Buy scheme will have on the housing market?
Overall, I think that the reinvigoration of the Right to Buy scheme will have negative consequences for the provision of good housing in the UK. Properties in public ownership will be lost to the private sector and the amount of social housing available for those most in need will be reduced. We need housing policies which increase supply, rather than just driving up demand or simply moving tenure.
FR: You recently announced your Build to Rent scheme – do you think we are seeing more demand for affordable homes like these and will other firms follow suit?
We very much hope that other firms will take a long-term view of the UK housing market and invest in residential housing supply as well. There are good, stable returns to be made over the very long term, which is why we are interested in this sector. Demand is clearly high, especially as the UK is still not building a sufficient number of new homes, so we think that institutional investment in residential housing for the long-term is part of the answer.
FR: What more can be done to address the issue between supply and demand? Do you think it will become increasingly difficult for first-time buyers to get onto the housing ladder?
We have not been building enough new homes in the UK for well over a decade, so not only is there an annual shortfall to address, there is a considerable backlog too – possibly as much as a million homes. But there is no single answer to this problem – progress will be made through a number of programmes and initiatives such as the Government’s clear support for Shared Ownership, which in many parts of the country will offer the only realistic way of achieving home ownership, at least to some degree. Other initiatives, such as custom build housing, our Build to Rent programme, and the development of New Towns will all play a role. However, many commentators have pointed out that the only times in our history when we, as a country, have built a sufficient number of new homes was when Government, national and local, were building homes too. It’s therefore very important that the dogma which surrounds this issue is challenged.
FR: If you could see one headline about the housing market in 2016, what would it be?
“Parliament announces all party Housing Commission to run UK housing policy for the next 25 years”?
