simplybiz. co. uk 11 in the next two years. This will be driven as the new government provides clearer pathways on the green journey and works to create a consumer demand for action.
There is also likely to be action to address the issues facing certain coastal communities where there has been an explosion in holiday homes, Airbnb and HMOs. This can price locals out of the property market and damage the local economy as they cannot then find people to work in local businesses.
Finally, there is a real need for this government to give clear and precise guidance to the country and to the housing and lending industries on the route map to net zero. The plan for retrofit appears a bit like a join the dots book at the moment( apologies to Gen Z and younger). Not only do we need to complete the pictures, we have no idea of the colours that might be needed. Without clarity on what needs to be done by when, expectations on grants and support and maximum expenditures to satisfy requirements for properties of limited value, then we are unlikely to make any real progress. Lenders, surveyors and the advice sector are ready to pull together to help consumers through the maze. At the moment, however, it is too complex to navigate the world of retrofit assessment, installer selection and the financing options for the vast majority of consumers to have any confidence that they will make the right decisions. We now have firms operating in this area, but advisers are not yet aware enough to talk the customer through the journey with conviction.
Against this backdrop, we also have the pressure on a tax system that is struggling to fund the levels of government support needed in this modern economy. The private rented sector has, for some time, been at the front of an assault on its profitability and controls over lending volumes that has caused some structural realignment. There has been a steady decline in single property landlords with a marked shift to the use of corporate vehicles and multiple units. As a critical part of the UK housing ecosystem, further stigmatisation that these are not‘ working businesses’ does little to help encourage an effective mix of options for all types of people.
We will see significant development in the funding of green initiatives in the next two years
With more complex income, more products available and 40 year mortgages, personalised mortgage advice based on individual financial situations and preferences should be adopted on every occasion. With smart technology augmented by people, this has to be our future
Conclusion
The UK mortgage market remains a dynamic and evolving sector subject to multiple influences. House prices are likely to remain stable as the growth in supply will still not match the increases in demand for at least two years. The 1.5 million houses target is back-end loaded with 400,000 units likely to be needed in 2028.
Technology will work to improve the end-to-end buying and selling process, but the human touch in the advice process will remain a core offering. The new government will ask more of the industry and it will be up to lenders and advisers to help deliver a better tomorrow.
At AMI, we have invested heavily through the last few years to get smarter at selling through our Protection Viewpoint series. The launch of our open websites greenmortageadvice. uk and workinginmortgages. org. uk are windows to allow firms and advisers be ready for a more demanding future. It is critical we maintain our reputation with Treasury and FCA of our challenging but pragmatic approach to issues. The work completed years ago to insulate mortgage firms from the costs in the pensions and investment advice sector incurred via the Financial Services Compensation Scheme, has saved mortgage advice firms in excess of £ 400m.
Despite great strides, the larger lenders would rather not have intermediary advice in the way. But our relationships with the rest of the market and the increasing complexity of many consumers means the future is bright if you are committed to learn.
A great place to work, but the need for AMI as the advisers friend has never been so obvious.
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