How to communicate to clients what is happening with rates

  • Explain how the current economic environment is affecting the UK housing market
  • Communicate how borrowers will be affected by the market turmoil
  • Explain how to advise clients if house prices fall
  • Explain how the current economic environment is affecting the UK housing market
  • Communicate how borrowers will be affected by the market turmoil
  • Explain how to advise clients if house prices fall
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Approx.30min
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How to communicate to clients what is happening with rates
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“Lenders pulling out of the market, loan to values being slashed, and large-scale government intervention required” is comparable, he notes. 

Our current woes are UK focused and largely caused by politics rather than economics.Rob Gill, Altura Mortgage Finance

The big difference between now and then, however, is the sheer speed at which events have unfolded. 

Gill says: “While events seemed very dramatic 12 years ago, they unfolded over several months. The current crisis, however, started on a Friday morning and was in full swing by Monday lunchtime.”

The other big difference is the credit crisis was a global event, started by US sub-prime mortgages and spreading throughout Europe and beyond. 

“Our current woes are UK focused and largely caused by politics rather than economics,” said Gill.  

What is the new housing minister's policy?

Britain has had no less than four housing ministers imposed on it in 2022. The current incumbent is Lee Rowley, a former banker turned Derbyshire MP, the 13th Conservative to hold the role in the past 12 years, who only took over in September.

The revolving door of housing ministers has unsurprisingly meant the country feels policy is in the doldrums – and Britons want more government intervention.

Karen Noye is a mortgage expert at Quilter

With rising rental prices, a record rise in house prices, a shortage of social housing and a construction supply chain and labour shortage crisis, 81 per cent of Britons think housing is an issue in the UK, according to a YouGov poll in February.

YouGov reported in December that 60 per cent of Britons think government policy has had a negative impact on housing in the UK.

Karen Noye, mortgage expert at Quilter, points out a key change that has already been brought to the table is the relaxation of planning rules to release more land for commercial and housing developments in 38 investment zones. 

This was announced at the "mini" Budget, though since Kwarteng was replaced by Jeremy Hunt as chancellor on October 14 this may not go ahead. 

Noye says: “While changes to planning could result in more housing stock – which is much needed – the proposal has naturally been met with widespread concern over the potential destruction of nature it could cause.

“Should this change go ahead, it will present a tricky balancing act for the government as while it cannot be seen to be paving over the UK, it is also under pressure to build more stock to help relieve the current housing supply issues.”

What does the broking world need ministers to do to help?

Brokers are calling on the government to provide stability to a market in turmoil. 

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