Assetz chief calls for radical supply side reform in housing market
Stuart Law, chief executive of peer-to-peer lender Assetz Capital, has called for radical supply side reform of the housing market to encourage more private investors into the property sector.
His comments come after the release of the latest Halifax House Price Index, which showed that house prices decreased marginally, by 0.1 per cent, in September. Meanwhile, the annual rate of growth fell to 9.9 per cent from 11.4 per cent.
Law (pictured) said house prices will continue to be affect as political and economic uncertainty continues. But cutting taxes, while helping more people potentially afford a home in the short term, will not be enough if runaway mortgage rates are not addressed.
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He said a radical reform can ensure that increased construction output can better meet national demand. However, he realises this will be difficult to get past Conservative backbenchers.
“If a progressive planning reform package survives the House of Commons, it will still be tough for housebuilding to catch up, with demand set to grow even further as aspiring buyers find they have more money in their pockets than they expected,” he added.
Assetz Capital recently removed the queue to its access accounts for investors and increased its rates on three of its accounts. Law said this was because the group believes now is the time to encourage more private investors into the UK property sector, “where there is a fantastic growth opportunity given the scale of demand for new housing”.
This will also drive the growth prime minister Liz Truss has talked about and avoid a long-term housing affordability crisis, in his view.
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