Challenges and Opportunities in the UK Mortgage Market
The Pembrokeshire Coast National Park Authority meetings discuss the involvement of Principality in affordable housing initiatives and the attitudes of the private sector towards affordable housing. It also highlights the challenges and opportunities for lenders in the evolving regulatory landscape, along with insights into the UK mortgage market landscape.
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Presentation Transcript
Pembrokeshire Coast National Park Authority Scrutiny Committee November 2012 Peter Hughes Managing Director Principality Commercial Chair CML Cymru
Principality A key player in the housing agenda at the heart of what we do Scope of involvement:- Lender to RSL sector in Wales commitment c 200m LCHO lender Shared ownership Homebuy S106 lending Affordable schemes with house builders Likely participant in Newbuy Other innovation Welsh Housing Partnership Ely Bridge Development Company Close relationships with housing stakeholders in Wales WLGA Welsh Government RSLs
Attitudes of Private Sector to Affordable Housing Principality extremely committed in its core areas. Wider engagement more variable. Key elements:- Fragmented approaches from various stakeholders = high due diligence Differing agendas of Local Authority /areas Multiplicity of S106 Agreements many have onerous clauses Scale need to balance against system requirements Individual site concentration limits Emerging conduct agenda In a perfect world initiatives need to be Scalable Joined up / more uniform Less management intensive
Challenges / Opportunities for Lenders - In Tray New Regulatory / Supervisory Regime Basel III new capital standards / requirements Higher liquidity standards Sir John Vickers Review of Banking Industry Mortgage Market Review Mixed messages Politicians / Treasury / Bank / FSA / FCA Forbearance Euro Zone Crisis
The UK Mortgage Market Other mortgage lenders share Government-owned share of the market 43.6% 56.4% Lloyds Group 28.6% Santander 13% Further structural changes e.g. break up to meet EUC concerns Nationwide BS 11.1% Barclays 6.7% HSBC 4.7% Bank of Ireland / Bristol and West 2.2% Britannia 1.8% Northern Rock 5.4% Yorkshire BS 1.3% GE Money Home Lending 1.2% Coventry BS 1.1% Royal Bank of Scotland 6.3% Clydesdale-Yorkshire 1% Bradford & Bingley 3.3% Others 12.9% Lenders continuing to grapple with new world Source = Thedata Ltd / CML
