A redoubled governmental commitment to the housing market is indeed good news for the industry and for the UK economy as a whole.
How successful it will be will rely on continued dialogue with regulators and the industry, but the government certainly has an opportunity to help get the market moving.
To begin with, there is no doubt that the housing market does face certain challenges. Many people are aware of the nature of some of those obstacles.
For one, there is a real sense of pessimism about the chances of potential first-time buyers getting on the ladder. Many are daunted by the size of the deposit required, they fear being declined for a mortgage or are simply mystified by the application process itself.
Others worry that once they buy their home they may find themselves unable to move on when their job or personal circumstances change.
The Halifax Generation Rent research from earlier in the year found that, while 77% of all non-homeowners still aspire to owning their own home, two-thirds of that group believe they have no prospect of achieving it.
Added to this problem of negative sentiment, there are further issues, including regulatory constraints, the impacts of the wider economic environment and the increased cost of funding, and the imbalance between supply and demand.
However, the mortgage market is renowned for its innovation and I truly believe we can look with some optimism about the future.
I would agree with Paul Smee, director general of the CML, who said that the government has the capacity to act as a “real catalyst for good” in this context.
The government can be a positive force in those key objectives: to get the market moving and lay the foundations for a more responsive, effective and stable market.
The government has previously announced significant investment in increasing the supply of affordable homes and Halifax was one of the first lenders onboard the government’s FirstBuy scheme, announced in the June budget.
Schemes, such as these, are good news for developers and homebuyers, and the government has already announced a number of new initiatives to kick start the market.
We, of course, welcome any efforts to boost the market, but each initiative must obviously be measured on its own terms.
The key is that government, regulators, and the industry keep talking.
The expression “joined up thinking” is a common one, but it’s precisely what we need from regulators, industry and the government in order to tackle the current challenges and make the most of the opportunities in the housing market.
And that’s when, hopefully, that most elusive of things returns – confidence.
Mike Jones is sales director of mortgages at Lloyds Banking Group
