Intermediaries believe that government policy is the greatest risk to the mortgage market, according to research by Black & White Bridging.
Black & White Bridging surveyed 100 intermediaries about the risks in the mortgage market, including the Bank of England’s base rate decisions, the market for first-time buyers and government policy.
More than half, 53%, believed that government policy is the biggest risk to the mortgage market, with another 28% calling it the second biggest risk.
Meanwhile, affordability for consumers is the second biggest risk facing the mortgage industry, with 31% of respondents considering it the biggest threat to the industry.
The Bank of England’s base rate decisions came in third at 11%.
The first-time buyer market was considered a low risk to the mortgage market, although property availability was seen as an even smaller threat.
Damien Druce, Chief Operating Officer of Black & White Bridging, said: “It’s clear that the industry has little confidence in the current government. Given the utter mess the Chancellor has made over the budget, I’d say they’re very tight on money.”
“Unfortunately, it looks like the chaos will continue, with Ms Reeves failing to rule out further tax increases in the spring. She has already alienated landlords and those with higher-valued properties, while offering nothing to support first-time buyers. Real estate agents have learned the hard way that this anti-business, anti-growth government cannot be trusted.”
He adds: “Consumer affordability and base interest rates, through inflation, are both affected by changes in government policy. So this all comes back to the same core problem. It remains to be seen what impact the Budget will have on inflation and the thinking of the Monetary Policy Committee.”
“But for these factors to become less risky, a base rate cut should be implemented this week, allowing interest rates to fall as we head into the new year and giving the sector a strong start into 2026.”
“It was once a huge problem, but pent-up demand, due to budget hesitation, has meant there is plenty of real estate available and on the market.”
“As transactions pick up again, this could become a bigger problem, especially if interest rates fall. But with landlords selling en masse, we still have a long way to go before property availability becomes an issue again.”