06 MORTGAGE NEWSLETTER objective of building 1.5 million homes in this Parliament. Whist we have heard of all the reports we don’t have enough Plumbers, Electricians, Bricklayers, land etc, one area caught my eye for consideration which will impact on this target. Did you know, UK cement production has fallen to its lowest level since 1950. Cement I am sure you know is the key binding ingredient in concrete, which is the most widely used material in the construction industry, and mortar. The Mineral Products Association (MPA) said production levels were "increasingly under threat" due to high energy, regulatory and labour costs. According to the MPA, about 40% of British cement is manufactured in the Peak District, with the rest of the production spread across the UK. Here is the “kicker”! The UK made 7.3 million tonnes of cement in 2024, according to the MPA, which represents manufacturers of products such as asphalt and cement. That was about half of that produced in 1990 and similar to production levels seen when rationing was still in place following the World War Two. Production has declined to a level similar to the 1950’s which will impact government targets like homes and hospitals and power plants that are due to be built. A project such as the Sizewell C nuclear power plant could need up to 750,000 tonnes of cement and a new hospital would require nearly 8,000 tonnes. A traditional fourbedroom home needs between three and five tonnes! Meanwhile, the Consumer Duty regime is now two years old! Where has the time gone! Brought in to enable lenders and advisers demonstrate fair treatment of customers, particularly those in vulnerable circumstances it appears incongruous that Consultation Paper 25/2 is now Policy Statement PS25/11. If you are not aware of this please contact us to know more, in essence this is the rise of execution only business moving forward for the benefit of dare I say the big 6 lenders to “claw back” market share What is undeniable in our market currently is the level of uncertainty being created possibly by testing headlines which may have no legitimacy but which don’t help to create an environment of confidence. In August we saw the arrival of the potentially new Property Tax to replace Stamp Duty for properties valued at over £500,000, this has now been followed by the headline in one trade magazine of “Landlord ‘assault’ as Reeves eyes NI on rental income”, where it is suggested the Chancellor may apply national insurance to rental income in the upcoming Autumn Budget in the hopes of raising £2bn. Of course the Treasury are not commenting on such headlines, but the uncertainty this causes has a ripple effect not on the housing & lending markets but on the economy as a whole. With the Housing market being front and centre of much of this Governments policy to get the economy moving it has become a key battleground. Currently, the Government have 7 proposed initiatives available for customers to access to get on the housing ladder, but none seem to have the gravitas that HTB had stimulus wise. It will interesting to see if the new Housing Minister keeps to her predecessors
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