Six months ago, just ahead of the general election, I used this column to outline my aspirations for future government action on three key priorities:

• A properly functioning housing market – for today and tomorrow
• Initiatives that encourage a nation of savers – creating a save now, buy later culture
• An economic and industrial framework that values mutual and co-operative businesses – increasing competition and consumer choice

Approximately 150 days in and we have had two key statements from the Chancellor – the Budget and the Mansion House speech – which have provided a clear indication of Labour’s policies and priorities for the year ahead.

Housing
 

My starting point on housing is the need for a comprehensive, long-term Government housing strategy, kicking off with an independent review involving all stakeholders who have a role in the housing market, including lenders, brokers and conveyancers as well as consumers and the Government. The strategy would then provide a roadmap of initiatives to support a thriving housing market, both today and into the future. 

Unfortunately, there is currently no evidence that an over-arching housing strategy is on the Government’s agenda. However, there have been some notable mentions on housing policy, along with some notable exceptions.

The Government has committed to build an additional 1.5 million homes in the next five years. A laudable ambition that would go some way to address the current imbalance between housing supply and demand, which is undoubtedly one of the key causes of the housing crisis. 

However, setting a target is very different to delivering the ambition.  A report from the Home Builders Federation shows that the number of new homes and sites given planning permission has plummeted, with figures earlier this year showing the fewest consents to housing sites since the data collection began in 2006. As planning permissions are a lead indicator of future supply levels, the Government target is looking decidedly challenging.

The Chancellor has committed £5 billion to housing, of which £500 million will be for affordable housing. The details of the new investment in affordable housing will be set out in the Spring Spending Review. It’s imperative that this does not focus solely on social rent, but also includes support for affordable home ownership. Shared ownership is an area where the building society sector punches well above its weight. This stepped approach to homeownership is essential, as without it there will be virtually no route for those currently in social housing to move to homeownership.

On notable exceptions, the absence of extending the Stamp Duty relief currently provided to first-time buyers was a disappointing omission from the Budget.  First-time buyers (FTBs) are essential for a properly functioning housing market, yet with the average home costing more than six times the average salary, and interest rates significantly higher than just three years ago, affordability is a huge barrier for them.

The temporary Stamp Duty price threshold that was introduced in 2022, has been helpful in reducing the upfront costs of getting on the property ladder. Alongside increased Stamp Duty cost for FTBs, markets are forecasting that interest rates will stay higher for longer than previously expected due to other Budget announcements. A double whammy for FTBs who were hoping for policies that would ease their affordability issues.

Savings
 

Whilst there are many benefits to having a nation of savers, those who have a nest egg to fall back on in an emergency and achieve their dreams without relying on credit, there hasn’t been any incentives to encourage this behaviour.  The Chancellor missed the opportunity to increase the Personal Savings Allowance. There was also no reduction to the Lifetime ISA penalty or increase to the Lifetime ISA and Help to Buy ISA property thresholds. Changes that would ensure these products remain fit for purpose.

Mutual and co-operative sector
 

The Chancellor used her first Mansion House speech to demonstrate the Government’s commitment to double the size of the mutual economy. A new industry-led Mutuals and Co-operatives Business Council will drive forward, what we hope will be a mutuals-first approach to policy making.

The culture, behaviours and decisions at mutual and co-operative organisations are different because of their ownership model. A strong mutual sector provides choice for consumers and, in financial services, building societies and credit unions create resilience for the sector.

With Government recognising the value of the member-owned business model, now is an exciting time to be in the mutual sector.