Government policy is the biggest risk to the mortgage market according to bridging professionals

16 December 2025

Property availability is not a concern

Intermediaries think government policy is the number one risk to the mortgage market, according to research from Black & White Bridging.

Black & White Bridging polled one hundred intermediaries active in the bridging sector and asked them to rank risks to the mortgage market, risks that included Bank of England base rate decisions, consumer affordability, the dynamism of the first-time buyer market, government policy and property affordability. More than half, 53 per cent, thought government policy is the biggest risk to the mortgage market, and a further 28 per cent selected it as the second biggest risk.

Damien Druce, chief operating officer at Black & White Bridging, said:

“Clearly, the sector has little faith in the current government. Given the complete shambles the Chancellor made of the Budget, I’d say they are bang on the money. Unfortunately, the chaos looks set to continue, with Ms. Reeves failing to rule out further tax rises in the Spring. She has already alienated landlords and those with higher value properties while offering nothing to support first-time buyers. Brokers have learnt the hard way that this anti-business, anti-growth government is not to be trusted.”

According to the Black & White poll, consumer affordability is the second biggest risk to the mortgage industry, with just under a third (31 per cent) of those polled ranking it in greatest threat to the sector. Bank of England base rate decisions came in third (11 per cent).

Damien added: “Consumer affordability and the base rate, via inflation, are both impacted by changes to government policy. So, this all comes back to the same core issue. It remains to be seen what impact the Budget will have on inflation and the thinking of the Monetary Policy Committee. But for these factors to become less of a risk, a base rate cut must be implemented this week, enabling interest rates to come down as we head into the new year, and getting the sector off to a strong start in 2026.”

The first-time buyer market was deemed a low risk to the mortgage market, although the availability of property was seen as an even smaller threat.

Damien concluded: “Once it was a huge problem, but pent-up demand, due to Budget hesitancy, has led to plenty of property being available and on the market. As transactions begin to pick up, this may become more of an issue, especially if interest rates drop. But with landlords selling up in droves, we have a long way to go before property availability becomes an issue again.”

While brokers are concerned about ongoing government policy, Black & White recently highlighted that 82 per cent of bridging professionals think their confidence in the market will grow over the next 12 months, buoyed by hopes of an expected period of economic clarity and stability post-Budget.