I am delighted to have been asked to write for Mortgage Soup as it launches into the market. Trying to think about what to lead with in a new publication that is fresh and different is difficult, as I know they are looking to change the horizon of reporting.
The change they are trying to bring about did get me thinking about what – as an industry and as a wider economic community – we are facing in relation to change. We have a new government and all the new policies they are bringing in that will affect us. Just in the housing arena, we have proposed new planning laws, new build quotas, stamp duty changes at the end of March 2025, changes to second home stamp duty, The Renters Reform Bill, and the net zero challenges that were again highlighted by the government this week at COP29. That looks like a lot of change coming our way.
Add in the FCA reviews on how Consumer Duty is working, the protection review, their feedback on commission disclosure next year, and many other areas of oversight, and you have yet more change and challenge in your business.
If we then add in the wider economic indicators, inflation maybe higher over the next 12 months than previously predicted, National Insurance costs to be passed through the economy, base rate not dropping as quickly as anticipated, SWAPs still volatile, and mortgage rates currently going back up (hopefully short term) plus the unknown consequences of a new Trump administration, the Middle East, and Ukraine is enough to make you want to go for a lie down and turn your phone off.
PLUS ÇA CHANGE
However, is this rate of change new to our industry? I have worked in financial services since 1988 and back then we did have change, The 1986 Financial Services Act was being bedded in and then we had the carpetbagging period, but it never felt as frenetic as it does now. As an industry, the change we have experienced in the past 15 years and the external challenges that have happened in a short period of time are unprecedented. But do we have to accept that this is now the normal rate of change, or do we see a period of stability on the horizon?
Personally, I do not see there being a slow down to change. We have had several false dawns over the past few years, but then another shock has sent us off to realign our businesses and reassess how we deal with clients.
TECH TIPPING-POINT?
What I do feel is needed, and will happen to both expedite change and help us manage change, is technology. Many column inches and panel debates have lauded that ‘this year (enter any year between 2006 and 2024) will be the year technology breaks through’. We may be at a tipping point at present, with many firms now proactively collaborating to knit systems together in a true end-to-end process that works well for all in the chain. Getting engagement and adoption will need clear guidance from key players in the industry.
Finally, if the pace is not going to slow down, we need to ensure that we look after ourselves and our staff. Managing our teams to ensure that they are working sensibly, are taking care of their health – not just physically but also mentally and dietary – will be so important.
In this world of continual change and challenge, one constant is that we are a people industry and that clients want that personal advice, experience, and reassurance that the intermediary delivers.
I look forward to delving into some of the above issues as well as touching on the specialist property finance market in future blogs.
