The Intermediary – March 2025 - Flipbook - Page 42
RESIDENTIAL
Opinion
The end of
remote working?
L
ately I’ve been hearing
of ever more companies
reducing their staff ’s
ability to work from
home. Both in the UK
and globally, major
industry players have announced that
they’re scrapping the ‘hybrid’ model
and staff are required back in the
office. Boots, Amazon, and JD Sports
are just some of a long, and seemingly
ever-growing, list.
In my opinion, seeing some of
the largest firms announcing such
changes will make a difference once
more to the UK housing market, and
in turn the mortgage industry.
Back and forth
Prior to 2020, we were all so used
to seeing season ticket loans, travel
deductions and cycle-to-work schemes
shown on client payslips.
Since 2020, however, this has all
been rather scarce. The majority
of office-based personnel usually
mention how they are able to work
remotely, sometimes only aending
the office once a month, or even less
frequently for a quarterly meeting.
Nevertheless, with the shake-up to
many company policies and senior
management seeing the importance of
in-person collaboration, we’re likely to
see a change in housing demand again
going forwards. I anticipate we’ll see
more property coming up for sale that
isn’t within easy reach of transport
links, and the demand will centre
again around the proximity to train
stations or key-road access.
With this in mind, those
searching for a mortgage are likely
to have increased costs, especially for
transport. You might then also see a
spike in the everyday spend, as well.
No longer will they make a peanut
buer sandwich at home, but now £12
on a salad and coffee from Pret might
become normal. This is coupled with
increased travel costs; for example, an
annual season ticket from Colchester
where our head office is based to
London Liverpool Street comes out
at £6,404 currently on an annual
basis, rather than paying monthly,
which works out higher. A potential
decrease in disposable income will
make it harder to achieve the loan
that’s desired.
Recently, we’ve had more lenders
in our offices discussing how they’re
increasing their income multiples this
year. For those seeking a mortgage
now – whether purchasing for the first
time, moving home or a remortgage –
the increase in lender multiples will be
a welcome sight.
We might even see a shi on the
remortgage reasons from capitalraising for home improvements such
as a home-office fit-out, to increased
amounts of debt consolidation where
commuters put the hey travel bill on
to a credit card if there isn’t workplace
support in place.
Playing catch-up
Corporate shake-ups affect housing demand
42
The Intermediary | March 2025
This potential change on the horizon
will be a key consideration for advisers
when choosing a suitable lending
option for clients, and those lenders
that haven’t already increased their
lending multiples, or become more
accepting of debt consolidation, are
going to need to catch up.
On the buy-to-let (BTL) front,
we might see landlords continue to
explore the more specialist type of
JONATHAN FOWLER
is founder and managing
director at Fowler Smith
Mortgages & Protection
Lending multiples
increasing will be a
welcome sight, with
potential increased
travel costs and chilcare
becoming normal
yet again”
leing – houses in multiple occupation
(HMOs) and multi-unit freehold
blocks (MUFBs) – as we potentially
watch demand for renting rooms close
to transport links steadily increase.
In this space, we’re seeing some
lenders becoming more accepting
of the corporate tenancy model,
and I’m hoping more will follow
as we’re potentially going to see
some companies wanting to secure
buildings close to their offices to rent
to the workforce.
I’d like to see lenders continue
to become more understanding of
such costs, which for many will now
be unavoidable. Lending multiples
increasing will be a welcome sight,
with potential increased travel costs
and childcare becoming normal yet
again for some clients.
Lenders naturally stagger their
income multiples, based on household
income, but I do wonder –especially
if they’re aiming to have a substantial
lending year – what else they’re
able to do to assist the end-client
to acquire a property, or even just
switch lenders. ●
