The Intermediary – August 2026 - Flipbook - Page 23
RESIDENTIAL
Opinion
A joined-up
approach
T
he debate around
housebuilding has
understandably
focused on the need to
increase supply, but
the brokers we talk to
are consistently making the point
that building more homes is only
part of the story. The real challenge
is ensuring that more people can
realistically afford to buy them.
The new Government has an
opportunity in October’s Budget
to show that success should not be
measured simply by the number of
homes started or completed, but by
whether greater supply gives more
people a credible route onto the
housing ladder.
That means looking beyond volume
alone to whether homes are being
delivered in the places people need
them, and at price points local firsttime buyers (FTBs) can realistically
consider. Communities need a mix of
homes and tenures, but FTBs should
not be an aerthought in decisions
about what gets built and how people
are helped to buy.
This comes as data shows that, for
many FTBs, an average deposit of
£61,090 is now required. While this
varies by region and circumstance, it
illustrates the scale of the challenge
for people trying to save while paying
rent, covering household bills and
managing everyday costs.
More homes can widen choice,
support local growth and ease pressure
where prices have moved away from
local incomes. Yet an FTB may still
be unable to proceed because their
deposit is too small or their borrowing
capacity falls short.
Brokers also tell us that some buyers
are trying to navigate affordability
assessments developed for a very
different interest rate environment.
A household may have managed rent
reliably for years and built a realistic
budget for homeownership, but still
find that the borrowing available to
them does not reflect the financial
reality they are living with.
Housing delivery and mortgage
accessibility therefore need to work
together. A buyer needs a suitable
home, a deposit they can realistically
build and a mortgage that remains
manageable over time. If one is
missing, homeownership can remain
out of reach regardless of how many
homes are available.
It would be simplistic to suggest
that the answer is just to make homes
cheaper. Housing markets are shaped
by land, construction costs, local
demand, planning, infrastructure
and finance. The question for
Government, lenders and the wider
industry is how greater supply
can translate into a realistic route
into ownership for creditworthy
borrowers, without weakening the
responsible lending standards that
protect both households and the
wider market.
Mortgage reform
The solution will lie in a more holistic
approach, where housing delivery and
mortgage reform work hand in hand
with each other.
That is where the Financial Conduct
Authority’s (FCA) recent Mortgage
Rule Review maers, supporting FTBs
and other underserved consumers
creates an important opportunity to
consider whether mortgage rules are
helping creditworthy borrowers access
suitable lending.
The industry should use that
opportunity to focus on responsible
innovation, clearer affordability
assessments and beer outcomes
for buyers.
The Budget is also an opportunity
to support a stable and long-term
approach to delivering homes FTBs
can realistically consider, while giving
households confidence that the rules
and support available to them will
not keep changing before they are
ready to act.
AARON SHINWELL
is chief lending officer
at Nottingham Building Society
Brokers have an important role to
play, given that they see the pressures
facing prospective buyers at close
range, from the difficulty of building
a deposit while renting to the point
at which a realistic household budget
does not translate into enough
borrowing power.
Their insight should inform a wider
discussion about how housing policy,
savings support and mortgage access
work together.
Government, local authorities,
housebuilders, lenders and brokers
all have a part to play. Government
can support the conditions for more
homes to be delivered and provide a
clearer policy framework for FTBs.
Local authorities and housebuilders
can ensure that supply reflects the
needs of their communities. Lenders
and brokers can continue to support
borrowers through responsible and
sustainable decisions.
For lenders like us, we recognise
the need to think innovatively about
the mortgage options we can offer to
people looking to take that first step on
to the housing ladder.
This is an important part of our
strategy as we build out our specialist
lending proposition.
For Andy Burnham’s Government,
the next few months represent a
golden opportunity to connect the two
sides of the housing challenge.
More homes are essential, but
mortgage market reform and a
credible route to ownership for FTBs
must form part of the same plan. ●
August 2026 | The Intermediary
21
