What action does it suggest?
UK Finance has called for collaboration with the government to tackle the UK’s housing shortfall of 4.3 million homes, stating that meaningful progress will require cooperation between the public and private sectors.
In its newly released report, Homes We Need, the trade body, which represents over 300 firms, including 120 mortgage lenders, outlined recommendations to support the government’s push to increase housebuilding. The report highlights the critical role of the banking and finance sector in providing mortgages and financing to the housing market.
UK Finance’s proposals include simplifying the planning system to reduce development times and create consistency in planning decisions. This would provide developers with the certainty needed to meet housebuilding goals.
The new report also advocates for policies to assist first-time buyers by making the current temporary nil-rate bands on stamp duty for properties up to £425,000 permanent. It further suggests expanding access to shared ownership schemes and reviewing post-financial crisis mortgage rules that may hinder potential borrowers.
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For older homeowners, UK Finance proposes an independent advice service to help them with housing decisions, along with a stamp duty exemption to reduce costs for those downsizing. It recommends that the government’s housing targets include homes suitable for older buyers in desirable locations.
In the rental market, UK Finance suggests an annual review of the Local Housing Allowance to align with rising rents. The organisation also recommends a government-sponsored registration system for landlords, aimed at easing compliance for landlords and identifying substandard properties. Tax incentives for green upgrades to rental properties were also proposed.
“Everyone needs a safe, secure, and affordable home, so we welcome the government moving quickly to reduce the UK’s housing shortfall and get more people onto the housing ladder,” said Charles Roe (pictured), director of mortgages at UK Finance.
“However, the size of the challenge means we need strong action, from both the public and private sectors, right across the UK’s housing market.
“Our new report sets out a range of recommendations to complement the government’s plans. These include making the planning process simpler, removing some of the barriers first-time buyers face, and ensuring we’re meeting the housing needs of our ageing population. Improving standards in the private rental sector and supporting the social and affordable rental sectors will also be key.”
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