Constant ministerial reshuffles are negatively impacting Government housing policy, according to the latest member survey from the Intermediary Mortgage Lenders Association.
The IMLA is urging Theresa May’s new Conservative administration to back private housebuilding, social housing and shared ownership in the upcoming Autumn Statement.
Gavin Barwell is the sixth housing minister to assume the role since the start of 2010, following in the footsteps of John Healey, Grant Shapps, Mark Prisk, Kris Hopkins and Brandon Lewis.
Almost three-fifths (59%) of lenders say this state of flux has adversely affected the mortgage and property markets, with two-fifths (42%) of intermediaries agreeing.
The IMLA said a possible solution to the revolving door could be the establishment of an independent, less party-political housing department.
Both lenders and brokers believed that private housebuilding should be higher up the agenda, with the former reckoning it should be the chief concern. Lenders also identified social housing and shared ownership as key priorities for Government support, while brokers are keen to see more focus on last-time buyers.
Peter Williams, executive director of IMLA, said: “The Government’s lack of clear, structured housing policy has been an elephant in the room for some time now. Successive administrations have made pledges and promises to change this, but it’s never been fully followed through with any real comprehensive long term policy.
“Initiatives and schemes have stimulated bursts of activity and the mortgage market itself has adapted to evolving consumer needs over time, but until such fundamental issues as the continued under-supply of housing, the backlog of unmet demand and the role of different tenures are properly addressed then the same issues will crop up time and again.
“We would also like to see Philip Hammond delay or reverse the tax relief changes which will impact on the rental market and the capacity of that sector to provide homes for those who can’t get into home ownership. However, our member survey shows lenders aren’t too optimistic that this will happen.”
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