The new Prime Minister, Andy Burnham, has announced plans to set out a new 10-year plan for Britain later this year, with housing expected to form an important part of the government’s agenda.
In his first speech as Prime Minister, Burnham also pledged to build more council homes as part of plans to address some of the pressures facing households across the country.
For homeowners and prospective buyers, announcements about housebuilding can naturally raise questions. Could increasing the supply of homes affect house prices? Could it make it easier for first-time buyers to get onto the property ladder? And what, if anything, could it mean for mortgages?
Housing market changes take time
While increasing the number of homes available could help improve housing supply over the longer term, large-scale changes to the property market rarely happen overnight.
New homes can take years to plan and build, while house prices are influenced by a wide range of factors including interest rates, inflation, employment, affordability and demand in individual areas.
Government housing policy is therefore just one part of a much bigger picture.
What could it mean for your mortgage?
Headlines about changes to the housing market can make it tempting to delay a decision while you wait to see what happens next.
However, when it comes to your mortgage, your own circumstances are generally far more important than trying to predict where the property market might be heading.
If you’re considering moving home, buying your first property or remortgaging, factors such as your income, deposit or equity, existing borrowing and monthly affordability will all help determine the options available to you.
Mortgage rates and products can also change independently of government housing policy.
Is your current mortgage deal coming to an end?
If your existing mortgage deal is due to end in the coming months, it may be worth starting to explore your options rather than waiting for further government announcements.
Looking ahead can give you time to understand what deals may be available, consider whether your circumstances have changed and decide what works best for you.
You don’t necessarily need to wait until your current deal has finished before starting the conversation.
Focus on what works for you
There will undoubtedly be more detail about the government’s plans over the coming months, and we’ll continue to follow developments that could affect homeowners and buyers.
In the meantime, rather than making decisions based on individual headlines, it can be more useful to focus on your own plans, finances and longer-term goals.
If you’d like to discuss your mortgage, remortgaging plans or the options available for your circumstances, get in touch to speak to one of our advisors.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors
