Consumer Duty – an update

Key Consumer Duty developments and recent communications issued by both AMI and the FCA, with commentary on implications for mortgage intermediary firms…

AR regime – updated AMI Q&A and deadline reminder

Having heard back from the FCA, we have updated AMI’s Q&A documenton the AR regime. We also wanted to remind firms of the upcoming 30 November 2023 deadline…

FCA application window open for firms approving promotions for unauthorised persons

Firms that approve financial promotions for unauthorised persons have until 6th February 2024 to apply for approver permission from the FCA…

FSCS levy and compensation figures update

The FSCS has released an update on its levy and compensation figures for 2023/24, as well as anticipated levy figures for 2024/25…

AMI unveils The Perception Gap, the fourth annual Protection Viewpoint

This Viewpoint features hot topics facing the industry, including value of advice, building trust, consumer buying habits and generational views & attitudes…

Your October update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his October update, focusing on AMI’s Protection Viewpoint, new build and Consumer Duty…

Edit Content

Log in here for full access to all our great content


Please log in below with your username (which is your email address), using all lower-case letters.


Forgotten your password?
No problem, simply tell us you have forgotten your password to receive instructions instantly via email.

Having problems logging in?
If you are a current member but are unable to login, please first make sure you are using all lower-case letters for your username/email address. If you still have difficulties, please contact us via email at so we can rectify your problem.

Not a member?
Learn more about the benefits of becoming a member or apply online and we will be in touch.

The housing market appears stable, with forecasts suggesting that transactions will reach 1.2 million in 2019, in line with the long-term average.

However, according to analysis by Zoopla and Hometrack, activity in the market is not evenly spread geographically.  Sales volumes in the South East and London, where house prices are high and stamp duty bills large, have plummeted by between 15 and 25 per cent between 2014 and 2018. Transactions in the North East, Wales and Northern Ireland have risen, largely as a result of better affordability in these areas.

This is positive for those looking to get on the housing ladder in these regions, but there remains a severe and widening wealth gap between the North and South. This is evident when considering the average value of equity held in the homes of those over the age of 65 in the UK. Hometrack and Zoopla figures put this at £363,000 per home in London but just £76,000 in the North East.

There has been much political rhetoric about investing in the North of England, less actual delivery. Decommisioning old heavy industries in the late 1970s and all through 1980s has left a lasting legacy in regional economies, with long-term unemployment, abandonded local high streets and few career opportunities for those seeking above average salaries.

In spite of repeated promises to invest in infrastructure in these areas, to support better mobility and encourage more employers to move out of London and further North, the economic reality remains bleak for much of the country.  Perhaps this has contributed to the social and political differences evident between those in the North and those in the South and partially responsible for the political mess that is Brexit.

These divisions are likely only to get worse over the coming decades as so much of an individual’s ability to scale the social ladder depends increasingly on inherited wealth built up by older generations in their homes.

Looking more deeply at recent data, the latest government statistics show that in Quarter 1 2019, district level planning authorities in England received 111,300 applications for planning permission, down 5 per cent on the corresponding quarter of 2018. They granted 81,500 decisions, down 7 per cent from the same quarter in 2018; this is equivalent to 88 per cent of decisions, unchanged from the same quarter of 2018. The statistics also showed that local authorities decided 88 per cent of major applications within 13 weeks or the agreed time.

Anecdotal evidence suggests that new builds are selling off-plan within four weeks of listing, up to a full 12 months ahead of completion. Developers put this down to accelerated demand from buyers, combined with a lag on planning application approvals from local authorities for new residential developments.  The Office for National Statistics figures for Q1 2019 bear this out in England. District level planning authorities granted 11,200 residential applications, down 6 per cent on a year earlier, including 1,600 for major developments and 9,600 for minor ones.

However, we are hearing that the ratio of planning applications applied for to granted has tightened, with the logjam in the delivery of new homes now sitting squarely with developers rather than local authorities.  Restricting the volume of new build starts to the degree that off-plan sales are selling a year ahead of completion and within a month of listing, coupled with stories in the media revealing the aggressive sales tactics being used by some developers should not be misconstrued. This looks like developers controlling the supply of new homes to maintain unit values. Indeed, the latest results season saw builders post another round of record profits.  The last time we saw this offer to completion gap was back in 1988, a year ahead of the 1989 crash.  Food for thought?


Robert Sinclair

October 2019


Forgot Password?

Join Us