In the world of housing, consumer confidence is much like the foundation of a home – without it, the structure can crumble.
Over the past few months, a rise in confidence has helped build a solid foundation, with growing interest for valuations and appointments from potential buyers.
It is a hopeful sign for the housing market, a sense that perhaps the worst of the storm has passed.
A key driver has been clients reacting to positive moves in the market, whether it is the first cut to the base rate or the increasing competition among lenders.
Across the board, we have seen lenders cutting rates as they try to win new business and increase market share.
Improving rates has helped improve affordability and relieve some of the pressure on potential buyers.
However, the looming Budget feels like dark clouds gathering on the horizon.
It has the potential to squash this growing confidence, putting a damper on the market’s progress just when we need momentum.
Mere talk of a painful Budget has already helped to send swap rates and gilt yields back up, pushing many lenders to re-price or even pull products entirely.
The Labour government has a crucial opportunity here to ignite the market, offering initiatives such as Help to Buy or the raised stamp duty threshold for first-time buyers.
Now is the time to introduce new, creative measures that give people the confidence to pursue homeownership – or at the very least get behind the fantastic schemes that already exist, such as shared ownership.
At the heart of this challenge, one thing remains clear: education.
Educating clients about their options is the key to navigating these unpredictable times.
Lenders must collaborate with brokers to inform buyers about the opportunities that still exist, even if the traditional routes seem out of reach.
As brokers, we must remain visible and proactive in our communities, showing clients how we can help them achieve their dream of homeownership.
Finally, while Labour’s plans to increase housing supply are welcome, we need more than just new houses.
Tangible, immediate support for the housing market is essential, especially for first-time buyers who are the cornerstone of the market’s future and, ultimately, the broader economy.
John Phillips is chief executive of Just Mortgages and Spicerhaart
