This has included plans to build 1.5 million new homes, speed up and enhance the transaction process, reform planning and widen access to mortgages, thus improving homeownership rates.
So, Mortgage Solutions is asking brokers: How has the government made its mark in its first year?
Ellis Shepherd, director of All About Mortgages
Some of the policies Starmer has implemented may cause issues. In particular, the push for devolution within councils and counties will only be more problematic. I fear it will force more housing into areas that cannot cope, without the correct infrastructure.
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This may lead to more unsuitable types of homes being built, which will put more stress on public services.
I believe lenders and the Financial Conduct Authority (FCA) have done more to support the mortgage and housing markets than the government has. The recent stress testing changes and the availability of higher income multiples across the board are welcome. If the government wanted to help, it could focus on creating plans and policies to help people get on the ladder.
Help to Buy certainly was not a ‘roaring success’, but it helped buyers get on. They should consider changing the rules for developers to sit on the land they acquire, to force them to build within a much shorter period, rather than waiting for it to increase in value. This doesn’t help the people living in this country; it just lines developers’ pockets.
The Mortgage Guarantee Scheme was a success. It helped lenders realise that ‘yes, we can lend back at 95% loan to value (LTV) and feel comfortable about it’. This scheme has ended, and a new version will be announced soon, but I suspect most lenders would have continued with a 95% offering anyway.
Sarah Thompson, managing director at Mortgage Scout
Labour has made progress in signalling support for homebuyers, but most of the momentum we’ve seen over the past year has come from lenders.
Mortgage rates have begun to fall, application volumes are improving, and lenders are becoming more innovative, particularly in terms of affordability and income flexibility.
The Mortgage Guarantee Scheme may sound positive, but in practice, it duplicates what many lenders were already doing; however, we are yet to hear further details on it. The recent change in the loan-to-income (LTI) cap is a step forward, albeit modest in scale.
What we need now is delivery, not just announcements. A clear, consistent plan to support affordability and modernise the mortgage journey, from digitising transactions to reforming outdated regulation, would go much further. The government’s goals are broadly aligned with where the financial services sector is already heading.
If that alignment turns into meaningful action, there’s every chance we’ll see real progress. But buyers need certainty, and that’s what’s still missing.
Tom Davies, group financial services managing director at LRG
Labour’s housing ambitions have been clearly set out, and there is a shared goal across the sector to increase supply and improve access. However, delivery will be the true measure of progress.
The FCA’s recent adjustment to LTI rules is a positive signal, though modest in scale. Unlocking lending capacity is beneficial, but it must be accompanied by planning reform and practical support for developers.
One year in, we understand that large-scale reform takes time, but the market is looking for tangible signs of progress.
At LRG, we are already seeing more activity where homes are priced correctly, and lending options are competitive. Confidence is returning, but slowly. What we hope to see now is continued collaboration among government, regulators, and industry to create the conditions necessary for long-term progress.
It’s about turning intent into action, and we’re ready to support that journey.
