Budget March 2023 measures may have indirect mortgage market impact
Despite the lack of mention of housing in the Spring Budget 2023 today (15th March 2023), some policies introduced may have a knock-on effect on the mortgage market.
Chancellor of the Exchequer Jeremy Hunt introduced various policies in order to address the cost-of-living crisis and fuel economic growth.
There was a particular focus on getting economically inactive people back to work, either by encouraging older people with ‘returnerships’ and simplified pension taxation, or by increasing support for those facing barriers due to disability or childcare costs.
While Hunt did not address the role or current state of the housing market, Will Hale, CEO of Key, noted that the market should still take note of the measures introduced.
Hale said: “While today’s budget seemed to be fairly light touch for the property market, the announcements around encouraging more people to work longer bear some consideration for the mortgage sector.
“If more people anticipate working well into what was once retirement age, then we need to consider whether we have enough flexibility built within products aimed at older customers to allow repayments to be adjusted according to the different income levels they receive in employment, part-tirement and retirement.
“The later life lending industry already meets many of these needs but taking the time to consider whether we can do more to encourage active management of debt as people age, provide more opportunities to access housing equity and boost the use of new – and potential – flexibilities, needs to be front of mind.
“What customers expect is changing and we need to consider how we best support this.”
Article by Jessica Bird from The Intermediary