The housing market appears to be entering another period of significant change, with activity taking place across several different fronts at the same time. The FCA is looking at ways to make mortgage lending more accessible for underserved borrowers, the government has set out its roadmap for home buying and selling reform, while there is growing speculation further property tax changes could form part of a wider strategy to stimulate housing activity.
On the face of it, that all sounds encouraging, and much of it is. However, one of the biggest myths is that changing the rules automatically improves the homebuying experience. The reality is legislation, regulation and tax policy can potentially (and, dare I say it, eventually) create the conditions for a healthier housing market, but they do not, by themselves, deliver a smoother transaction for the customer. That depends on every part of the process working together.
Reform needs to translate into better outcomes
The FCA's proposals to give lenders greater flexibility and widen access to mortgage finance are a welcome development. If more first-time buyers can access the market and more borrowers who have previously struggled to secure finance are able to obtain a mortgage, then that is undoubtedly positive for both consumers and the wider industry.
Equally, the government's ambition to build more homes, modernise elements of the buying and selling process and review areas of housing policy should help create a more active property market. If further property tax reform follows, that too has the potential to influence buyer and seller behaviour.
However, we have seen before that policy changes often bring periods of heightened activity as consumers respond to new incentives, revised deadlines or changing market conditions. Creating more transactions is one thing, but ensuring those transactions progress smoothly is another entirely.
Ultimately, the customer does not judge the process by how many reforms have been announced. They judge it by whether their move progresses with confidence, good communication and as little uncertainty as possible.
Advisers will be more important than ever
As the regulatory and political landscape evolves, advisers (in my view) will need to prepare themselves for not just a more central role, but one which sees them required much more by their clients, across multiple areas, not just the provision of mortgage advice. Increasingly, they will be more valuable because they are often the one constant throughout the customer's journey.
Most clients are not interested in the finer details of FCA consultations, planning legislation or potential tax reforms. They simply want somebody they trust to explain what has changed, how it affects them and what they should do next. That places advisers in a unique position to help clients make informed decisions while managing expectations throughout what can often be a complex and emotional process. It also places more responsible and stress upon advisers.
Consumer Duty has reinforced the importance of delivering good customer outcomes, and that should not be viewed as ending once a mortgage offer has been issued. The client's experience continues right through to completion, which means every stage of the transaction contributes to their overall perception of the advice they have received.
Conveyancing is part of the customer experience
One area that still risks being overlooked is conveyancing. It is sometimes viewed as something that simply happens once the mortgage has been arranged, but it plays a significant role in determining how the customer feels about their homebuying experience.
No amount of regulatory reform can compensate for poor communication, uncertainty or a lack of transparency during the legal process. Equally, when clients receive regular updates, understand what is happening and know what to expect next, confidence grows and unnecessary stress is reduced.
This is why advisers should view conveyancing as an important part of the overall customer journey rather than an administrative handover. Working with a trusted conveyancing partner enables advisers to remain engaged with their clients, set realistic expectations from the outset and support them through to completion, helping to deliver the good outcomes Consumer Duty is designed to encourage.
At conveybuddy, we have always believed that technology should strengthen communication rather than replace it, while transparent pricing, proactive updates and close collaboration between advisers and conveyancers helps create a better experience for everyone involved.
Good reform still needs good delivery
There is every reason to be optimistic about the direction of travel. Greater mortgage accessibility, meaningful housing reform and sensible property tax changes all have the potential to support a healthier and more active housing market.
But there will is likely to be a major gap between this and implementation. Plus, reform should never be judged simply by the policies announced. Its success will be measured by whether those policies translate into a better experience for the people buying, selling and remortgaging their homes.
That is where advisers have a genuine opportunity to demonstrate their value. By staying involved throughout the transaction and recognising conveyancing is an integral part of the customer journey rather than an afterthought, advisers can provide reassurance, strengthen client relationships and help ensure the promise (and announcement) of reform becomes a positive experience in practice.
As the market continues to evolve, those advisers who embrace the whole transaction rather than focusing solely on the mortgage will be best placed to deliver better outcomes for their clients and build stronger businesses as a result.
