"If more advisers, more industry voices, and yes, the Government itself, started talking up these positives, consumer sentiment would shift. And when that happens, confidence returns, and activity follows."
As mortgage advisers, we’re acutely aware the current economic environment feels uncertain for many. We’ve seen months of volatility, confusing policy announcements, and headlines that seem determined to drag sentiment down rather than lift it up.
But if we’re able to step back from the noise for a moment, we’ll see the market conditions, particularly for borrowers, are far more positive than they are often given credit for.
Let’s start with what we’re hearing from the Government. There’s been a lot of talk about potholes, civil service cuts, and vague promises about housing supply. However, just ahead of the Spring Statement, the Government did announce a £2bn affordable housing package aimed at delivering up to 40,000 new homes.
While on the surface this seems like a drop in the ocean compared to overall demand, it’s a significant signal that it is starting to take housing supply and affordability more seriously.
For advisers and our clients, this package could present new opportunities, especially for first-time buyers and those seeking shared ownership properties. It has the potential to deliver a tangible boost that advisers can highlight when talking to clients hesitant about whether now is the right time to move.
But what’s still missing is consistent, clear messaging from the Government to underpin these efforts. If they truly want to stimulate the housing market, they need to reinforce that this is a good time to buy and back that up with supportive measures.
Lenders, for one, are stepping up. Despite swap rate fluctuations, we’re seeing competitive pricing, and not just from the usual suspects. The lenders who want to grow market share are cutting rates, loosening affordability criteria slightly, and showing real appetite to lend. Cases we couldn’t place in October or November are now sailing through, and clients who felt locked out of the market are finding opportunities.
Add to that a real shift in affordability. The three Bank Base Rate cuts we’ve already had this year are beginning to show up in tangible ways. Monthly payments are becoming more manageable for borrowers, and if, as expected, we get another cut in May, the picture will improve even further.
Affordability assessments are moving in the right direction, and lenders are increasingly willing to lend more, giving clients who’d previously been turned down a genuine chance to get on or move up the ladder.
So why does this disconnect remain? The mainstream media, in my view, has a lot to answer for. Too many column inches are dedicated to speculation about economic doom, rather than acknowledging these real improvements.
It's almost as if the media is determined to talk the market into a recession. That constant negativity feeds consumer hesitation, causing many to sit on their hands rather than make decisions.
This is where we as advisers have a real role to play. We need to be that voice of reason, cutting through the noise and showing clients the positives. The conditions are aligning for good outcomes: lower rates, better affordability, strong lender appetite, targeted Government funding to increase supply, and a housing market that’s more balanced than it has been in years.
If more advisers, more industry voices, and yes, the Government itself, started talking up these positives, consumer sentiment would shift. And when that happens, confidence returns, and activity follows. Not to mention what it could mean for its ‘Growth Agenda’ and the ongoing economic benefits.
We have an opportunity now. The next few months could be pivotal. But only if we start amplifying the good news that’s already here. Rates are falling. Lenders are open for business. Government funding is on the table, even if the decision to raise stamp duty thresholds for first-timers seems utterly bizarre, as does the lack of a clear Help to Buy alternative.
Clients have more options than they think. But we need to start shouting about it, and we need to keep up the pressure on the Government to deliver more in this area.
Because if we don't, the negative narrative will continue to dominate, and we’ll all feel the effects of a self-fulfilling prophecy. It’s time to change that story. The conditions are good, the opportunities are real, and a shift in tone — from advisers, the media, and the Government — could be exactly what the market needs to truly get moving again.
