Last summer, when Labor came to power, affordability, housing supply, program reforms and renters’ rights were key priorities.
Committed to deal with all these challenges – but is there any evidence that any real progress is being made?
Recently, the government has been committed to adopting a new mortgage guarantee scheme, but it still provides clearer details for this.
Again, the devil is usually in detail, and seems to have no details.
True solutions require collaboration, clarity and commitment to ongoing conversations, not just policy headlines that create uncertainty
This is what Sharon Beedham, ONP group relationship director, took over.
“The new mortgage guarantee program has been positioned as a game changer for first-time home buyers, but we are currently waiting for key details.
“Which might be another example of the government’s announcement, the lack of clarity that businesses and lenders make it work in practice?”
“How can lenders confidently support borrowers without a clear framework for qualifications, risk sharing and long-term viability? And, more importantly, how can buyers plan for their future when the rules are ambiguous?” Bedham added.
Research conducted earlier this year by Santander, UK, showed that 85% of mortgage brokers see health needs for homes in “new towns” across the UK.
Encouragingly, in February, Prime Minister Keir Starmer proudly announced that as many as 12 new towns, each with about 10,000 homes, began construction. However, the timeline is not encouraging: before the next election.
Governments can commit to reforms, but these policies could become hollow gestures without substantial investment in local authorities’ resources, regulatory oversight and tenant advocacy
This means we may only see results in the backend of Labor’s tenure – could it be used as a pre-election promotion?
Christian Miles, a mortgage consultant for the Fort Advisory Bureau, understands the slow pace of progress in the industry.
“The proposed new towns are planned for construction before the next election, which shows that any real impact may not be fulfilled until late in the Labour term. Given historical delays and planning bottlenecks, I will be cautious about whether these promises will translate into meaningful results before the next election cycle. Finding resources to build new housing is a huge question in itself.”
Melanie Spencer, head of sales and growth at the target group, said the overall consensus across the industry is that everything the government announced sounds promising, but there is growing doubt about how much it actually delivers.
How do buyers plan for their future when the rules remain blurred?
“In addition to the program reforms, the recent budget announced billions of pounds of funding for 2025/26 for affordable housing and housing assurance schemes to acquire construction for smaller home builders,” she said. “It is worrying that, while positive, it remains a small part of the ocean towards this year’s goal, not to mention the overall goal of 1.5 million homes.
“That raises the question: How will they do anything that previous governments have done and really achieve that? Pushing the problem further to their government will only make things worse.”
Spencer continued: “The problem seems to be that so far the government’s approach is too one-dimensional – focusing almost exclusively on housing. While the supply of new homes is absolutely important and will play a role in improving availability and calming housing prices, this is certainly not a silver bullet, especially in terms of skills, supply chains and overall market confidence.”
Bedham also identified a disconnect between government policies and expected implementation of industries.
She believes that if Labor is serious about increasing home ownership, it needs to interact directly and transparently with lenders, developers and industry experts before issuing an announcement.
“A good plan to implement a good plan will not help,” Bedham said.
I’ll be careful whether these promises will translate into meaningful results before the next election cycle
“Real solutions require collaboration, clarity and commitment to ongoing conversations, not just policy headlines that create uncertainty. It remains to be seen whether labor will conform to its promise and provide a policy that works in practice, or whether it will be another announcement without the details needed to impact the actual change.”
Another government’s recent striking promise is the crackdown on rogue landlords – a broader commitment to reforming the Renter’s Bill of Rights.
Heather Hancock, head of credit and operations at Black and White Bridge, stressed that while Labor’s commitment to cutting rogue landlords who exploit the housing welfare system is a step in the right direction, one fundamental issue has been overlooked: law enforcement capabilities.
“The government can commit to reform, but these policies could become hollow gestures without substantial investment in local government resources, regulatory oversight and tenant advocacy. The council is already struggling with overstretched law enforcement teams, which means that even with new regulations, rogue landlords may continue to operate without any consequences.”
Is this another example of the government’s announcement of a lack of clarity in which businesses and lenders make it work in practice?
Hancock said the labor force needs to address the root cause of poor housing conditions: Why do some landlords feel bold and provide substandard accommodation first?
“The real repression requires not only punishment, but also a shift in incentives that allow this kind of exploitation to flourish,” she said.
“Strengthier licensing, improved reporting mechanisms, and real support for tenants and landlords are crucial. Without these, the commitment to clearing the rental department will remain – a commitment, not a solution.”
This article is in the March 2025 version Mortgage Strategy.
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