The Financial Conduct Authority’s Mortgage Rule Review, while positive, is “only one piece of the puzzle” towards solving the issues in the housing market, AMI head of policy, Stacy Penn, has said.
Speaking on the FT Adviser podcast, Penn said that she would like to see the Mortgage Rule Review — feedback to which is currently being collected by the FCA — being expanded to examine issues further afield.
“I know a lot of this is beyond the remit of the FCA but there is a whole housing ecosystem that needs to function well and it’s how we bring everyone together,” she said.
“We know that there’s huge pressure on social housing, there’s not enough housing stock as it is, so that’s one area that needs to come into the conversation.”
Penn added that, while the industry discusses the government’s housebuilding targets a great deal, success in this area should not simply be ascribed to sheer numbers.
“It’s about how we are building homes that are not just affordable, but also allow movement in the second hand market,” she said.
Penn concluded by stating that, while the review is “positive” as a starting point, it needs to be co-ordinated through lots of different parts of the system
Additionally speaking on the podcast was St James’s Place divisional director of third party products & services, Tony Mudd, who argued that the authority will be likely to expand its call for feedback if they don’t get the outcomes they are looking for.
“The FCA has shown that if they don’t get the desired result they are very willing to step in and change things so if these changes mean the FCA doesn’t get the innovation they are looking for they will step in and make the relevant changes,” he pointed out.
In this episode of the FT Adviser podcast Mudd and Penn also discuss the environment that has fostered the need for such reforms, the impact on later life, the importance of authority collaboration, and their predictions for the review.
To listen to the podcast, click on the link above. Check out more articles on the FCA’s Mortgage Rule Review on FT Adviser and head to ftadviser.com for more podcasts.
tom.dunstan@ft.com
