Housing sector needs support to deliver affordable homes for tenants, says MD
The Chancellor of the Exchequer, Jeremy Hunt, is being urged to ensure that any housing-related announcements in today’s Budget are “fully thought through”, taking account of the potential consequences.
Bradley Moore (pictured left), managing director of Brightstar Financial – a specialist distributor - is keen for the sector to be supported, with additional high-quality, affordable housing delivered for tenants.
The Chancellor (pictured right) is due to make his Budget statement in the House of Commons, outlining the government’s plans for raising or lowering taxes, and for spending on health, schools, police and other public services.
“Housing is always a key issue when it comes to a general election and we may well see some policy announcements within the upcoming budget,” said Moore. “It’s often the case that any incentives that are introduced to stimulate activity also come with many considerations.
“You only have to look at the reduced Stamp Duty Land Tax (SDLT) after COVID to see the impact that policy can make. So, my hope is that any proposals are fully thought through with regards to their potential consequences.
“Given the ongoing housing crisis and that a fifth of all households live in private rented accommodation, it would be good to see policy that supports this sector in delivering more high-quality, affordable housing for tenants.”
How is the mortgage market performing in 2024?
Moore, who is also deputy CEO of the Brightstar Group, has a positive take on the current market.
“Early signs so far this year would indicate that we are in for a much better year in 2024 than last year,” he told Mortgage Introducer. “Much of 2023 was characterised by lenders being cautious about lending due to the volatile cost of funding.
“Now that the outlook is at least a little more certain, lenders are keen to make up for lost time and have an appetite to lend – you only need to look at the frequent rate cuts across all sections of the market for evidence of this. So, while there continue to be challenges, there is greater opportunity for brokers in 2024.”
He continued: “One consideration is that many customers will have missed credit payments or run up higher levels of unsecured debt during the cost-of-living crisis, which could see their mortgage application declined by a mainstream lender. So, the specialist market will have a big role to play in helping people to meet their objectives.”
The adviser community is likely to be impacted by the way lenders respond to the changing situations of their clients, Moore believes.
“The increasing complexity of customer circumstances is going to be a big consideration for brokers, who may find they see a higher number of applications declined by those lenders that they ordinarily use,” he reasoned.
“My advice would be, don’t say no to your clients until you speak to a specialist distributor like Brightstar. If you feel that you have genuinely reached the end of your expertise, talk to us. The worst that can happen is that the enquiry is delayed by a day, but you will know you can confidently say you have done everything you can to get it placed. The best that can happen is that you can secure a solution for your client and earn some income in the process.”
Read more: Bridging loan transactions hit new high
What is the impact of Consumer Duty?
Advisers’ workload has been increased by Consumer Duty, considers Moore.
“Brokers have much more work now on every application to meet their obligations under Consumer Duty in a constantly changing market,” he observed. “Many will find they are at capacity even if they are writing fewer cases than previously. So, for those who don’t work with specialist cases on a regular basis, why tie up your time in a sector which you are unfamiliar? If you work with a specialist partner, you can leverage their expertise and experience, be confident you are securing the best solution for your clients and earn a fee in the process.”
Moore co-founded Essex-based Brightstar Financial in 2011, which has since served over 30,000 customers. It recently announced that it was supporting staff who wanted to achieve the Certified Practitioner of Specialist Property Finance (CPSP) accreditation.
“It’s a cliché, but the most enjoyable thing about my role here is the people, in particular the way that we develop people,” Moore shared. “You spend as much time with your colleagues as you do your own family, if not more, so it’s great seeing other likeminded people succeed and improve their lives, whilst of course assisting clients to achieve the same. We are committed to upskilling people to enable better adviser decisions and customer outcomes.”
Reflecting on what he has learned during his career, Moore added: “You never know what’s around the corner. Be brave in your decisions, have a clear idea about what you want to achieve, but always be ready to adapt and change your plans to get there and don’t beat yourself up when things don’t work out.”
