Photo by The UK housing market is facing a challenging time, with Barratt Developments, one of the UK’s largest housebuilders, reporting a total of 14,004 home completions in the year ending June 30. While this figure may seem impressive, it represents a significant decline from last year’s numbers. According to Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, ‘Lower home completions, lower profits and legacy property charges of almost £200m mean 2024 will not go down as a vintage year for Barratt Developments.’
However, there are reasons to be optimistic about the future of the industry. Recent falls in mortgage rates suggest that lenders are starting to loosen their purse strings, a trend that could accelerate once interest rates start to be cut. This is good news for potential home buyers, who have been struggling to get onto the property ladder.
Planning reforms laid out by the new Labour government could also lead to a significant increase in new homes built, providing a much-needed boost for the industry. The proposed combination with Redrow could mean Barratt is uniquely placed to take advantage, and provide potential for cost savings.
Despite the challenges, there are still many first-time buyers locked out of the housing market. Until interest rates are meaningfully cut, it is hard to see that changing. However, with the new government’s focus on housebuilding and reform of the planning system, there is hope that the industry will start to see an upturn in the near future.
In related news, Air Academy has enhanced its CPD log feature, allowing members to track their professional development. This is a welcome move, as the Equity Release Council has emphasized the importance of bridging the differing CPD requirements that separate the equity release and mortgage markets.
Air’s CPD log was created in response to this, allowing members to monitor development within the Academy, as well as the ability to add and track external learning provision. The proposition also aims to enhance the ways members engage with the Academy.
Paul Glynn, CEO at Air, said: ‘In a market that rarely stands still, innovation is paramount. The new proposition and accompanying CPD log is born out of our dedication to support our advisers in their development and beyond.’
As the industry continues to evolve, it is clear that innovation and education will play a critical role in shaping its future. With the new government’s focus on housebuilding and reform of the planning system, there is hope that the industry will start to see an upturn in the near future.
Mortgage rates are falling, but will it be enough to boost the housing market?
The housing market is facing challenges, but innovation and education may hold the key to its future success.
Air Academy’s enhanced CPD log feature allows members to track their professional development.
The Future of Housebuilding
The new government’s focus on housebuilding and reform of the planning system is a welcome move, but it is clear that more needs to be done to address the chronic undersupply of new homes. With mortgage rates falling and lenders starting to loosen their purse strings, there is hope that the industry will start to see an upturn in the near future.
Planning reforms laid out by the new Labour government could lead to a significant increase in new homes built.
Education and Innovation
Innovation and education will play a critical role in shaping the future of the industry. Air Academy’s enhanced CPD log feature is a welcome move, and it is clear that more needs to be done to support advisers in their development and beyond.
Education and innovation will be key to the future success of the industry.
Conclusion
The UK housing market is facing challenges, but there are reasons to be optimistic about the future. With the new government’s focus on housebuilding and reform of the planning system, and innovation and education playing a critical role in shaping the industry’s future, there is hope that the industry will start to see an upturn in the near future.
