A New Politics
Peter Hunt
London 20th October 2010
Political Context
• New Government
– Coalition, inherent instability
– New Ministers, different experience
– New policy priorities
• Deficit reduction plan dominating politics
– It either works or it doesn’t
– Little or no funding for initiatives
– Impact on wider economy
Economic Context
• Crisis of confidence in financial services
– Government bail-out
– Plc weakness
• The aftermath of economic crisis
– Low interest rates
– Sluggish mortgage market
– Consumer confidence
– Uncertain future
• Challenge to mutual lenders
– Capital requirements
– Regulatory factors
• New regulators
Growing Political Support for Mutuals
• Political support in Parliament self evident
– All Party Groups, legislation support
– But often more instinctive than pro-active
• Mutuals Manifesto
– Cross sector plan for Government
– Labour, Conservative & Liberal Democrats manifestos
• Coalition Agreement
– Commitment to diversity
The Coalition Government & Mutuals
• Coalition Agreement
• Existing Mutuals
– Corporate diversity
– Choice and competition in markets
• New mutuals
– National state services – Post Office etc.
– Health, local authorities
What is the Coalition Housing Policy?
• Government wants a ‘period of stability’
• Home ownership
• Housing Supply
• Rented Housing
– Private rented
– Social housing
Home Ownership
Help for those who aspire to own their homes
• Deficit reduction to keep interest rates low
and improve credit flow
• Promote shared ownership
• Abolish HIPs
• Preventing repossessions
Housing Supply
Increase housing supply where people want it
• Planning de-regulation
• Community Right to Build
• Housing Market Renewal
• Empty Homes
• Physical regeneration
Rented Housing
Private Social
Release from over-regulation Target supply on those who
• Voluntary accreditation need it most
schemes for lettings • Review Housing subsidy
• Encourage wider range of system
investors • Decent homes schemes
• Support Councils to deal • Abolish Tenant Services
with rogue landlords Authority
What will this mean for the mortgage
market?
• Property prices
– Stable/falling?
• Keep interest rates low?
• More house building to compensate?
• Smaller mortgage market?
• Mutuals challenged
What the Coalition Means For Mutuals
Mutuals Forum
British Library Conference Centre
4th November 2010
www.mutuo.co.uk