Variety is vital to keep our sector in the best of health

18 January 2010

Crystal ball-gazing is always a tricky pursuit but we are at the start of yet another year and we can look forward to it with a little more optimism than has been the case for the past few.

It would be an understatement to say that the mortgage market has changed radically, with fewer lenders, brokers, conveyancers and valuers involved. The industry has lost many capable individuals and while I hope many will return, inevitably some will not and that’s a great shame. a massive reduction in the workforces of many of the larger firms while a lot of the smaller ones have simply called it a day as professional indemnity premiums have spiralled.

Once again it’s a case of the good guys having to pay for the rest, and in some cases for the negligent or fraudulent activities of the few. Ours is an honourable profession but regrettably it has the odd bad apple that needs throwing out and rest assured, those operators won’t be missed.

My business has been one of the few looking to recruit valuers in recent times - we aren’t all locked up yet. We’re planning ahead by making sure we are ready to accommodate the levels of business the market is likely to generate.

Capacity may not be an issue right now but with the number of valuers having left the industry it could well become one, even with a fairly modest upturn in valuation activity.

We need competition and choice - less is not best and it’s certainly not in the interests of consumers

So what about my expectations for 2010? While many commentators are predicting further consolidation in the lending sector I am hoping this will not be the case.

We need competition and choice. Less is not best in our industry and it’s certainly not in the best interests of consumers.

My contact with lenders suggests there is a desire to lend, and indeed to lend more in 2010 than last year which is good news. But the industry also needs a far greater choice of products.

We need to support first-time buyers because without them we simply will not have a housing market.

So let’s hope lenders can be brave and inventive with their products to encourage the return of first-timers.

I also hope we see a greater supply of products and lenders supporting the buy-to-let and equity release markets.

These are important and while it is clear they have encountered a number of problems they still represent great opportunities for the sector.

So before the men in white coats finally come to take me away I’d like to say I think confidence will continue to grow in the housing market in 2010, builders will start to build houses again, lenders will lend again and valuers will be rushed off their feet. Now for the medication.

MEL KETTLE
DIRECTOR OF CLIENT SERVICES
GATEWAY

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