The sixth, Gavin Barwell, was appointed in July 2016. While the frequent ministerial changes do not reflect well on the government’s strategy, the latest IMLA research shows that the industry believes that the consequences of constant reshuffles extend beyond party politics.
Our research found almost 60% of lenders believe that this state of flux has adversely affected the mortgage and property markets. A clearly defined, long-term strategy is a huge factor in creating and sustaining a strong market. It would therefore be unsurprising if the housing department’s 12-month rotation policy had not had some negative impact.
What the UK desperately needs is continuity. With ministers coming and going, it becomes extremely difficult for industry leaders to develop a relationship with policymakers, which perhaps explains the current disconnect between industry priorities and those of the government.
IMLA’s research shows that neither lenders nor brokers thought the government’s top priority should be first-time buyers, but both thought they would continue to be the primary focus of the new housing minister. Indeed, both lenders and brokers believed that private housebuilding is a more pressing concern, with the former citing it as their key priority.
While the latest government plans to support smaller housebuilders is undoubtedly good news, the fear remains that ministerial changes will once again prove a hindrance going forward. A possible solution to the revolving door would be to establish an independent housing department, something the recent Redfern Review also proposed. Insulated from party politics, it would give policymakers an opportunity to undertake the root-and-branch reform that is needed to ensure people’s housing needs are met.
The likelihood of such a move remains unknown, but there is a definite appetite for change among the industry; our research showed that 59% of lenders and 48% of brokers support the concept.
