Ken Research - UK Mortgage Market 2017 Forecasts and Future Oppor

Decline in the UK Mortgage Market is the Result of Government Regulations and Weak
Economy Growth: Ken Research
February 2018: UK News
The report titled “UK Mortgage Market 2017: Forecasts and Future Opportunities”, provides
a comprehensive analysis of UK mortgage market overview, sluggish wage growth, less
consumer spending limit, government introduced schemes, hike in interest rates, and
untouched mortgage rates may witness a slight growth in mortgage market in UK.
Mortgage Market Overview in UK: Mortgage market offers loans to people or
organizations to purchase property which are later traded as asset-backed securities by
financial institutions. United Kingdom has witnessed a weak economic growth and a fall in
unemployment rate with stagnant productivity that led to a sluggish wage growth. This has
led to consumer’s lower spending power and is likely to continue in the current year with rise
in inflation. It was observed that the UK consumers are saving less rather than borrowing and
the growth in personal deposits has slowed along with consumer credit borrowing.
The housing market activity is growing modestly with the first-time buyers opting for new-
build properties using the Help to Buy equity loan scheme. UK government has planned
schemes that aimed predominantly at first-time buyers who can boost the number of
purchases in housing market. The government schemes are less benefitting and majority of
the consumers are struggling to find suitable homes. Such consumers are not putting their
own homes up for sale due to less benefit. The UK government intervention coupled with its
regulations in buy-to-let space has led to a declined market. The remortgage category has
witnessed a strong competition and low funding costs that meant an increasing number of
home-owners are taking advantage of the low mortgage rates.