Andrew Charnley, MD, Assetz Capital, says that housing has been a popular topic of discussion, as both the Conservatives and Labour start to gear up for the next general election.
Andrew Charnley from Assetz Capital notes that the UK faces many pressing social issues, but one of the key ones “remains housing, and you must go back far too many years for any semblance of a coherent government strategy to solve what can often feel like a topic we hear a lot about, but don’t see tangible, sustained and meaningful actions to address.”
Andrew Charnley of Assetz Capital added that it “remains incredibly challenging for market participants to plan effectively and the lack of a coherent and credible plan on this topic, is what the next government must enact, if it is to have any chance of convincing markets that it is serious about tackling the endemic problem.”
Andrew Charnley, MD, Assetz Capital, further noted that changes to “how unoccupied properties are brought to market as well as speed and collaboration with the housebuilding industry are long over-due.”
He also shared that every developer he talks too “has the same issue, so surely any new government would be wise in addressing, to build confidence in its commitment to resolving root cause rather than the symptoms.”
As a society, Andrew thinks the world is “constantly evolving, and a good example has been the shift to hybrid working, so why would government not look to adapt the planning system to make it easier for investors to convert commercial/mixed use sites into residential only properties?”
He also noted that housing affordability is “both a very real current challenge and a potential time-bomb for the UK. ”
Andrew Charnley, MD, Assetz Capital, added that you only “have to go back to the mid 1990’s to understand the underlying issue, when at that time, average house prices were only c4x average income. By the turn of 22/23, the average purchaser was spending more than c8x. A sharp (and to many unexpected) rise in borrowing costs has only increased the problem, and as a result, whoever forms the next government must not only address the current challenges, but also set out how it will address and solve the thematic issues playing out.”
He further noted that “with the building of new homes at a recent historical low level, and the current government having shelved its last manifesto pledge of mandatory housebuilding targets, its hard to see any other scenario, than an actual increase in the problem, at least in the short term, given the likely increase this will cause between demand and supply.”
He continued to note that “whoever wins the next election (and I won’t state my political leanings here), it has never been more important to have a vibrant and dynamic specialist lending sector, which stands ready to support property investors and developers alike. Experienced operators will be successful despite a complex and challenging environment, and no doubt will remain robust and resilient, irrespective of who forms the next government.”
Charnley, shared they are approaching the £2 billion lending milestone.