Industry Insight Episode 06 | The UK housing and mortgage sectors faced significant disruption in 2020. Lockdowns reshaped buyer behaviour, while reduced housing stock and shifting needs created new challenges for advisers. In this episode, we explore how the property market responded, how high-street redevelopment opened the door to alternative housing, and what it meant for brokers adapting to rapid change.
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Episode 1: Multigenerational Living Is On the Rise
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Episode 2: Challenges in the Mortgage Industry
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Episode 3: Turning Annexes into Holiday Lets
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Episode 4: Making the Dream Achievable
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Episode 5: Homeworking and Housing Demand
Housing Demand After COVID-19
The UK started 2021 with hope after a tough 2020. Despite the lockdown, the mortgage market continued to adapt. Brokers began looking ahead with a new purpose.
Learning from 2020 Mortgage Trends
2020 brought opportunity for some brokers and pressure for others. At Harpenden Building Society, the mortgage support team remained active. Adapting became essential. Markets shifted. Customer needs have changed. Advisers had to respond.
Key mortgage market challenges from 2020 continued into 2021. One of the main issues was low housing stock availability. This made mortgage placements more difficult for brokers.
The Shortage of Housing in England
Demand for housing grew steadily in 2020. England faced pressure from growing household numbers. Annual estimates showed 159,000 new households forming.
The supply of homes did not match this demand. Many people, especially in higher income brackets, wanted more space. This increased pressure on the market.
Reports from the House of Commons in 2020 showed the UK needed around 340,000 new homes each year. The government aimed for 300,000 homes annually by the mid-2020s. To reach this, investment and planning reforms were vital.
London and the South East felt this pressure most. These regions needed tailored housing solutions. They required affordable, accessible options close to jobs and schools.
New Housing Measures Launched in 2020
In March 2020, the government announced changes to speed up housing delivery. This helped developers and supported buyers. These policies gave the mortgage sector a boost.
Creating Homes from High Street Spaces
One key trend from 2020 was retail space conversion. Empty shops on high streets became potential homes. This helped meet housing demand and reduced urban vacancy.
High street decline was already happening before the pandemic. COVID-19 accelerated it. Retail closures created a new property opportunity.
Real-Life Redevelopments
In Welwyn Garden City, the old Debenhams store was converted into 27 flats. Similar projects appeared across the UK. Former British Home Stores sites were also under review.
In Hertford, the outdated Bircherley Green Shopping Centre was redeveloped. It became a mixed-use development with 92 modern apartments.
These changes turned inactive commercial areas into functional spaces. This helped ease the housing shortage.
Policy Changes Supporting Conversions
Government policies in 2020 allowed easier building changes. Developers could convert shops and offices to housing without full planning permissions.
Modern methods, such as modular builds, made this faster. The construction sector embraced these approaches.
Opportunity for Brokers and Mortgage Advisers
These trends created new lending needs. Redeveloped sites often needed tailored mortgage products.
If you are a broker handling complex or non-standard applications, this trend requires a fresh approach. Join a mortgage network that supports specialist cases.
High Streets and the Future of Housing
High streets saw a shift in use. Mixed-use buildings became common. This shift created long-term opportunities for advisers and developers.
Repurposed retail now supports affordable housing. For brokers, this opens access to niche client segments. The demand for flexible lending options grew.
Harpenden’s Mortgage Response in 2020
Harpenden Building Society stayed focused during 2020. A dedicated underwriter reviewed each case. This ensured speed and clarity for every applicant.
New home types required flexible mortgage solutions. Harpenden continued offering personalised assessments and tailored outcomes.
Preparing for Future Demand
Advisers must stay ready. Housing markets will change again. The experience of 2020 shows that adaptability is key.
For more updates and tips, see How to Find a Mortgage Network. It offers advice on selecting the right partner for your business model.
At Connect, we believe mortgage advisers have a vital role in shaping this next chapter of the housing market.
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