In a session titled ‘The Mortgage Market and its Opportunities’, hosted by Rob Jupp, CEO of The Brightstar Group, speakers at today’s Specialist Lending Expo highlighted both the opportunities and the challenges facing the housing market, cautioning that success will depend on stability and support from the new Labour Government.
David Whittaker, CEO of Keystone Property Finance, expressed doubt over the Labour Government’s ambitious pledge to deliver 1.5 million new homes.
Nevertheless, he praised newly appointed Housing Minister Angela Rayner, describing her as “passionate about what she wants to achieve” in tackling the UK’s planning system.
Whittaker said that streamlining the planning process could be a critical step towards easing the housing crisis, even if the target for new homes remains unrealistic.
Adrian Moloney, group intermediary director at OSB Group, added that Labour has a stronger chance of meeting its housing goals, given recent economic improvements.
However, he voiced the need for consistency, urging the Government to avoid the frequent leadership changes that marked previous Conservative administrations.
“The market needs consistency,” Moloney said, adding that rapid policy shifts and leadership turnover have historically undermined long-term progress.
Panellists also noted a shift in the mortgage market, where borrowers are increasingly seeking specialist lending solutions as they face tightened affordability requirements and a lack of Government support for first-time buyers.
The Autumn Budget excluded an extension of the Stamp Duty Land Tax (SDLT) discount for first-time buyers, a move that Barry Searle, managing director of Castle Trust Bank, warned would likely keep the rental market strong in the coming years.
“With the lack of opportunity for first-timers, the rental market will stay strong,” he added.
For professional landlords, however, the market remains full of opportunity.
While policy changes in recent years have discouraged some occasional landlords, Searle observed a “major opportunity in the market for professional landlords looking for refurbishment loans.”
He highlighted the demand for quality rental properties as a key driver of growth for landlords who remain active in the sector.
Despite an overall slowdown in the mortgage market in recent years, Steve Cox, chief commercial officer at Fleet Mortgages, said: “While rental growth has slowed down […] buy-to-let and the private rented sector will survive in the long-term because people will need somewhere to live.”
Landlords, in response to these shifting market dynamics, are adapting their investment strategies to capture stronger returns.
Searle noted a profitable trend in houses in multiple occupation (HMOs), particularly in university cities where demand from students remains steady.
Cox observed a trend of landlords venturing beyond their traditional geographical locations in search of higher yields, with the current average yield standing at around 6.03%.
Whittaker said that “the traditional model is not broken,” emphasising that the core principles of buy-to-let investment remain intact and continue to deliver attractive returns.
As the session came to a close, panellists agreed that the future of the housing market and mortgage lending will depend heavily on the Labour Government’s ability to maintain economic stability and policy consistency.
Moloney noted that with the market now largely dominated by professional landlords, stable economic conditions and predictable policy will be essential for fostering an accessible and sustainable housing market.
