It has certainly been an eventful autumn so far this year and one undoubtedly marked by change.
With Liz Truss having come and gone as Prime Minister, we now have Rishi Sunak having taken the helm – and there’s a lot for the new PM to consider.
Sunak has taken on his role amidst a cost-of-living crisis that has seen inflation and interest rates soar to heights not seen in recent times.
Challenging as this has already proved to be, it is important not to lose sight of the clear opportunities to be taken advantage of too.
This is certainly true of the housing market where tackling the housing crisis will likely be amongst the Prime Minister’s leading priorities.
A busy agenda
Despite current challenges, ensuring that the needs of homebuyers are being met – crucially in a way that is both sustainable and which supports ongoing efforts to tackle climate change – is as important as ever.
From ensuring that supply is matching demand, to pushing green financing up the housing agenda and easing the home-buying process through digital processes and technology, change needs to be holistic.
The UK’s housing market is – as it should be – a source of pride for the British people. Here we consider other key priorities that could not only help the housing market to recover, but set it in good stead for strong and robust growth going forwards.
Our market and net zero
Sustainability, ESG and ‘green’ are words on everybody’s lips. The race to net zero by 2050 is well underway and every industry needs to be doing its utmost to play its part.
When it comes to housing, the need for the introduction and adoption of green policies across the sector is widely recognised, with insulation in particular remaining a priority – a positive signal of what is to come.
As the new Government’s work gets underway, one area where a renewed focus would help propel the advancement of the green agenda is modular homes.
Built in a fraction of the time, and requiring less energy to do so, modular homes are also built with sustainable materials.
Supporting developers – in particular, smaller developers – to invest in the construction of modular homes would be a significant step forwards in resolving some of the supply issues currently facing the housing market, whilst ensuring the market is playing its part in furthering the government’s green agenda.
Embracing technology
Another area that will be key to improving the housing market will undoubtedly be technology. It is widely acknowledged that the global pandemic somewhat revolutionised the home-buying process.
Due to strict social distancing rules, players within the industry were forced to go online in order to ensure that transactions could continue to be completed.
This has meant that the move to digital and the subsequent ironing out processes that tend to follow such enormous scales of change have all happened within a very short space of time. This is not to say that we are “there” yet when it comes to full digitalisation, but we are well on our way.
A significant indicator of this is the digitalisation of a number of the previously paper-based (and often cumbersome) Land Registry processes.
The hope is the Registry’s new tech-driven systems will enable registrations to be carried out quickly and efficiently, reducing considerably what, in some cases, have previously been waiting times reaching into several months.
More widely, the continued adoption of digital mortgage processes will continue to ensure that mortgage applications are carried out smoothly, efficiently and, critically, safely.
This has certainly been an area of focus for MPowered Mortgages where the use of AI has been proven to drive considerable efficiencies. We look forward to continuing this work.
Tackling costs
Under the circumstances, it would be remiss not to mention what is perhaps the biggest challenge we are universally faced with in and that is, of course, the cost-of-living crisis.
The government will be only too aware that the absolute priority here is to ensure people are confident enough in the housing market – as well as in the wider economy as a whole – to proceed with their homebuying plans in the current environment.
Confidence will come from support which we have already seen in the form of help with energy bills and Stamp Duty cuts.
These are positive steps towards maintaining a much-needed sense of stability. Lenders can also play their part by being wise to the concerns many will be facing and adjusting products accordingly – whether it be in the form of free valuations, cashback products or competitive rates. This has certainly been a priority for us at MPowered Mortgages.
As the final quarter of the year progresses, it is important to remember that none of us are alone in the overcoming the hurdles we currently face.
If the new Government can set a strong example of how we can work together to tackle head-on some of the challenges in our midst, the housing industry can also play its part, setting us in good stead for a bright – and strong – future.
Emma Hollingworth is director of distribution at MPowered Mortgages
