General election reactive comment from Atom bank

05 July 2024

Richard Harrison, Head of Mortgages at Atom bank, comments:

“A general election always brings with it a sense of uncertainty, so it’s welcome to have such a definitive result. The size of the majority should allow the new Government to push on with addressing some of the issues faced by the property market. There’s no question that we aren’t building enough homes to meet demand, so addressing the planning system will be crucial. In addition, I’d like to see time given to whoever is appointed housing minister, given the way it has been a revolving door in recent years - the outgoing Lee Rowley was the 15th housing minister since 2010.

“It will also be interesting to see the detail of the Freedom to Buy permanent mortgage guarantee scheme promised in the Labour Party manifesto, aimed at supporting borrowers with small deposits. Atom bank has long championed these buyers, with a focus on flexible criteria and competitive rates at 95% LTV, so we welcome the prospect of more options for these borrowers.

“More than anything, I think the mortgage sector will relish some stability. The ongoing uncertainty of the last few years has taken a toll on borrowers, who today face higher interest rates when their finances are already stretched. Some economic calm, and the prospect of base rate cuts in the months ahead, will be welcome.”