View more on these topics

Housebuilders warn of mortgage ‘perfect storm’ in 2016


The Home Builders Federation is warning the mortgage market faces a “perfect storm” in 2016 with the withdrawal of Help to Buy and funding for lending.

Funding for lending is set to end in January 2015 while the two Help to Buy schemes, announced in the March Budget, are set to last for three years. The shared equity loan scheme will end in April 2016 while the mortgage indemnity guarantee scheme, due to launch in January 2014, will stop in December 2016.

Mortgage rates have dropped significantly since the launch of funding for lending while the HBF says the shared equity scheme has started “like a train” with 4,000 deals since its April launch.

Funding for lending was initially due to end in January 2014 but was extended for an extra year by chancellor George Osborne in the March budget.

HBF director of economic affairs John Stewart says: “Depending on the environment in which it happens it will be a very unhelpful co-incidence. It seems significant that over 12 or 15 months the Government will have to manage the withdrawal of these schemes very carefully.

“You can’t cliff edge stop Help to Buy after three years because it would be a disaster and transactions could fall quite sharply. It’s always the case when we have a stamp duty holiday with a big surge before it ends and a crash afterwards.”

Association of Mortgage Intermediaries chief executive Robert Sinclair says the focus now should be on getting the schemes working and then work out how to end them safely.

He says: “There is an issue as they are artificial market stimulants that will come to an end. At least they are phased over some period of time rather than all ending together. Any one of those three could be extended is not more.”


FCA confirms which products will not come under Ucis promotion ban

Exchange traded products, venture capital trusts and enterprise investment scheme vehicles are among products out of scope of the ban on promoting unregulated collective investment schemes to most UK retail investors. The Financial Conduct Authority has published final rules to ban Ucis being marketed to investors unless they are sophisticated investors or high net worth […]


Cofunds sees profits falls 17% to £6m

Legal & General-owned platform Cofunds has seen pre-tax profits fall 17 per cent to £5.9m in 2012, down from £7.1m in 2011. Assets under administration on the platform grew 33 per cent to £47.6bn, up from £35.8bn the previous year. Despite the growth, the firm’s accounts say directors see AUA as lower than expected although […]

Artemis appoints Richard Pursglove as head of retail

Artemis Investment Management has appointed Richard Pursglove as head of retail. Pursglove is currently Goldman Sachs head of third party distribution, a role he took up in October 2011. He joined Goldman Sachs from Gartmore, where he was head of UK retail. He left Gartmore when it was acquired by Henderson Global Investors in April 2011 in […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. cynical bloke 7th June 2013 at 4:37 pm

    Now that proposed end date, whne the wheels come off the mortgage market. Um. Er … would that be just after 2015 ?
    The year the general enection is due?
    is there a connection?

  2. This whole intervention in the demand side will end in tears (except for the politicians who having lost power by then will be on lucrative lecture tours). Resources and efforts would be better directed to the supply side. This is not simply granting planning permission rather by converting the huge number of ‘live’ consents already granted in to housing starts. This would increase employment in the building sector with knock on benefits in associated industries. Simply fueling another house price bubble is so obviously wrong but potentially a short term vote winner. Crazy.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm