Guest blog: Navigating U.K. housing market shifts in 2024 and beyond

Guest blog by Jill Wilson, Unisys partner management lead, and Itisha Gupta, Unisys Banking and Financial Services product manager

Jill Wilson and Itisha GuptaShort on time? Read the key takeaways:  
  • Some estate agents are predicting the U.K. housing market could cool in 2024. But some things stay the same: the need to maintain compliance and weather market swings.
  • Due to evolving business and industry regulations and the relentless surge in technological advancements, modern technologies have created a maze of options and opportunities for innovation and strategic differentiation.   
  • To help you navigate these choices, consider some guiding principles, including prioritizing longevity, cost-effectiveness and seamless integration.
  • Adopting a strategic mindset can help you embrace upcoming changes in the 2024 mortgage market.

Is 2024 set to redefine the U.K. housing market? Insights from estate agents indicate a cooling trend on the horizon, signaling a pivotal shift that demands strategic foresight from executives and mortgage lenders in U.K. building societies.

It's essential first to grasp the current market dynamics to chart this potential change. The Bank of England’s Monetary Policy Committee’s recent decision to hold the Bank Rate at 5.25% suggests a potential easing of mortgage rates. This development could reshape borrower experiences and influence building societies' lending strategies. 

Understanding these intertwined elements — market trends, monetary policies and lending practices — is crucial in navigating the evolving terrain of the U.K. housing market. To stay nimble, consider the role of advanced mortgage technology in steering your building society through 2024, enhancing how you serve your members. 

New year — same challenges? 

As 2024 unfolds, maintaining compliance in your lending strategies remains critical. The evolving regulatory landscape requires a detailed understanding and strategic approach. With tightening regulations and intensifying reporting requirements, mortgage lenders must ensure their operations align with the latest standards. This means investing in robust systems and processes that meet current regulatory demands and are flexible to adapt to future changes.

Market swings, on the other hand, necessitate a dynamic strategy. Adjusting lending rates to align with prevailing economic conditions, fine-tuning risk management practices and being attuned to market shifts are vital. Anticipating and responding to these fluctuations effectively positions mortgage lenders to weather the storms and capitalize on emerging opportunities.
Tips to help assess your evolving needs

Technology can help you thrive amid this turbulence. And luckily, the mortgage lending market is teeming with choices. Due to evolving business and industry regulations and the relentless surge in technological advancements, these changes create a maze of options and opportunities for innovation and strategic differentiation. 

But too many choices can be overwhelming. Here are some guiding principles to keep in mind to help you assess your evolving needs: 

  • Take stock of what matters by evaluating the significance of technological choices, such as cloud solutions and robotic process automation. 
  • Prioritize longevity, cost-effectiveness and seamless integration to ensure a positive customer experience, helping you make technologically sound choices that align with the organization's goals.
  • Consider the pros and cons of your tech choices. Looking into the advantages and disadvantages of public, private and as-a-service solutions, keep sight of balancing the speed of change, enhancing the member experience and implementing robust security measures.
  • Seek trustworthy partners by evaluating vendors based on tangible results, shared values and long-term relationships. Dig beneath the surface to assess security records and the stability of business operations, ensuring that the chosen partners align with your organization's vision and commitment to excellence.
  • Advocate for a realistic and budget-friendly approach to improvements. Instead of only looking at making dramatic changes to your systems — which can introduce unnecessary stress to the business — explore how you can incrementally modernize for the future by building a foundation for sustained growth and resilience in the face of evolving market conditions.

Embrace change in 2024

In the world of mortgage lending, volatility is an enduring companion. Market swings, regulatory changes and external economic factors create an environment where adaptability is an advantage and a necessity. The continuous ebb and flow of market conditions require executives and mortgage lenders to adopt a proactive stance.   

Adopting a strategic mindset can help you embrace upcoming changes. By carefully navigating options for technological improvements, building societies can weather market fluctuations and emerge as innovators, ensuring a secure and sustainable future for your members. 

To learn how to navigate the world of maintaining regulatory compliance and balancing member experiences, check out these resources and contact Unisys today

The views, opinions and positions expressed within guest blogs are those of the authors and do not necessarily represent those of the BSA.


You may also be interested in...

BSA Card
  • BSA.Event Event
  • Conduct Risk & Regulation

Consumer Duty: Navigating Board Reports

A free webinar hosted by BSA Associate, docStribute docStribute and Woodhurst are collaborating to bring you this webinar series. Following our pre...

BSA Card
  • BSA.Event Event

Building Societies Annual Conference 2024

Building Societies Annual Conference 2024 8th -9th May, Manchester   The Building Societies Annual Conference is the leading event in the secto...

BSA Card
  • BSA.Event Event
  • Audit & Taxation

Audit, Risk & Regulation Autumn Series

This year's annual update returned in a brand new format with a series of topical webinars covering key areas of audit, risk and regulation. This...

BSA Card
  • BSA.Event Event
  • Conduct Risk & Regulation

Consumer Duty: Linking Customer Outcomes to Customer Experience

A free webinar hosted by BSA Associate, Protiviti This webinar will explore ways firms can effectively test, monitor, and report customer outcomes ...

BSA Card
  • BSA.Event Event
  • Conduct Risk & Regulation

Annual Update & Networking for Boards

This autumn, the BSA is running its first event designed specifically for Board Members (Exec and Non-Exec) and Board attendees. This in-person eve...

BSA Card
  • BSA.Event Event
  • Conduct Risk & Regulation

BDO's Financial Services' NED event: Consumer Duty Board Champions

BDO’s Financial Services’ team is delighted to invite you to our first FS NED event for 2024, to discuss the Consumer Duty’s ("the CD") next phase of ...

BSA Card
  • BSA.Event Event
  • Prudential Regulation

Preparing for successful regulatory visits

Two half-day sessions on 24 & 25 January 2024

  • BSA.IndustryResponse Industry Response
  • Conduct Risk & Regulation

GC23-2 FCA Guidance consultation on financial promotions on social media

Our response to FCA GC23-2

BSA Card
  • BSA.PressRelease Press Release

The beauty of simplicity in a complex world

Speaking on the first day of the Building Societies 2023 Annual Conference at the ACC in Liverpool, BSA Chief Executive, Robin Fieth, talked about the...