The Intermediary – October 2026 - Flipbook - Page 65
SPECIALIST FINANCE
Opinion
are holding buyers back. But if the
underlying problem is insufficient
supply, the focus cannot simply
be on encouraging more people to
buy. Stimulating demand without
addressing the ability of the industry
to respond risks treating only one side
of the problem.
We therefore need to see more
aention on the supply side of
the equation. That means greater
certainty around housing policy,
continued progress on planning
reform and practical measures
to support smaller and regional
developers, which have an important
role to play in increasing housing
supply, but can be particularly
exposed to higher financing and
construction costs.
The Government also needs to
recognise that uncertainty itself has
a cost. Developers make investment
decisions over many years, not against
the political cycle. If policy continues
to change or the industry is unclear
about what will be required of it, there
is a risk that developers delay projects
or take a more cautious approach to
new investment.
The consequences extend beyond
housebuilders. A lack of housing
supply also constrains activity across
the wider housing market. When
there are fewer homes available,
transactions can remain subdued,
affordability remains stretched and
people who might otherwise move are
more likely to stay put.
That has implications for
the mortgage market, too.
When people cannot find
or afford a suitable
property, they
may decide
to
improve their existing home instead
of moving. This could include
investing in energy-efficient
improvements such as solar panels
or heat pumps, which can require
significant upfront expenditure.
Having made that investment,
homeowners may be reluctant to
move before they have had time to see
the benefits, particularly where the
financial or energy savings build over
several years.
Green mortgage products and other
lender initiatives supporting energyefficient home improvements may
also make it more aractive for people
to invest in the property they already
own, rather than move.
For lenders and mortgage providers,
that means the market is not simply
about supporting new purchases.
Remortgaging, product transfers and
borrowing for home improvements all
become increasingly important parts
of the picture.
Ultimately, the Government’s 1.5
million homes target is an important
statement of ambition, but ambition
alone will not solve the housing
shortage. The latest construction
data shows that the industry is
still operating in a challenging
environment, particularly in
housebuilding.
The Budget is an opportunity to
address some of those barriers, but
there is no single
measure
that will
RICHARD PIKE
is chief sales and marketing
officer at Phoebus Software
transform the market overnight.
What the sector needs is a credible,
consistent strategy that gives
developers the confidence to invest
and the ability to deliver.
The lesson from previous housing
initiatives is clear: seing a target
is the easy part. The real test for
the Government will be whether it
can create the conditions that turn
that target into homes people can
actually buy.
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