The Specialist Lending Expo shed light on current and future opportunities amid shifting policies.
- Experts emphasised the need for stability and consistency from the Labour Government.
- Increased demand for specialist lending solutions was noted due to economic constraints.
- The rental market is expected to remain robust amid challenges for first-time buyers.
- Professional landlords are adapting to shifting market dynamics to optimise returns.
At the Specialist Lending Expo, experts revealed that the housing market’s success largely depends on the new Labour Government providing a stable economic and policy environment. Angela Rayner, the newly appointed Housing Minister, is seen as passionate about reforming the UK’s planning system, a move that could ease the housing crisis, despite skepticism over Labour’s ambitious housing targets.
David Whittaker of Keystone Property Finance expressed doubts about Labour’s pledge to build 1.5 million new homes but acknowledged Rayner’s determination to overhaul the planning process. Adrian Moloney from OSB Group noted that Labour could have a better chance of meeting its housing goals if they maintain a consistent approach, echoing concerns over the upheavals seen under previous administrations.
Panelists pointed out a shift towards specialist lending as borrowers face increased affordability challenges. A lack of government incentives, such as the missing Stamp Duty Land Tax (SDLT) discount for first-time buyers in the recent budget, will likely sustain demand in the rental market, according to Barry Searle of Castle Trust Bank. This could present opportunities for landlords who focus on refurbishment and quality rental properties.
Despite a slowdown in the mortgage market, some professional landlords see potential for profit, especially in houses in multiple occupation (HMOs) and areas with student populations. Steve Cox from Fleet Mortgages mentioned that landlords are seeking higher yields by investing outside traditional areas, with average yields around 6.03%.
The event concluded with a consensus that the housing market’s future relies heavily on the Labour Government’s ability to deliver economic stability and policy predictability. This environment is crucial for supporting an accessible and sustainable housing market, particularly as professional landlords become more influential players.
The consensus is clear: stable policies and economic conditions are vital for a sustainable housing market future under Labour.
