"Do not underestimate the influence held by trade bodies"
As has been well publicised, the Labour Party recently held an emergency mortgage summit with a group of brokers to discuss the impact of higher rates and reduced affordability on first-time buyers and homeowners.
The summit was overseen by Shadow Chancellor, Rachel Reeves and Shadow Housing Secretary, Lisa Nandy.
Vic Jannels (pictured), chief executive at the Association of Short Term Lenders (ASTL), said the audience for this summit was made up purely of brokers, with no representation from lenders or trade bodies.
“The lack of representation from lenders or trade bodies was welcomed by some brokers, who claimed that corporates are too far removed from the coalface to make a meaningful input,” Jannels said.
While Jannels said he understood this sentiment to an extent, he believed that it was important not to underestimate the significant insights and influence held by trade bodies, particularly when it came to engaging with policy makers.
Working at the coalface
Jannels said that while trade bodies may not appear to be at the coalface of the industry, many members of the associations provided their services on the ground.
“Many members possess a collective expertise that combines and communicates the experiences, observations and considerations from a huge range of different sources from the organisations we represent,” Jannels said.
This collective input, Jannels said, often provided a more representative view of the issues facing an industry, and carried more weight, than the anecdotal evidence provided by an individual broker and their experience with their clients.
This was indeed valuable on a granular level, but at a trade body, Jannels said it could provide a more holistic view of a situation.
“Importantly, we do this on a regular basis through consistent engagement, rather than a one-off, headline grabbing event,” he added.
Consistent engagement
At the ASTL, Jannels said the association had, in recent years, engaged with both the Treasury and the Financial Conduct Authority (FCA) on key issues such as the enforcement moratorium and Consumer Duty.
Jannels added that the regulator recently presented at its member and associate member meeting, and the Bank of England would be addressing its annual conference later in the year.
“We were, admittedly, disappointed when the recent announcement of the mortgage charter failed to recognise the unique characteristics of short-term mortgage lending, which meant the recommendations were, on the whole, irrelevant to our sector,” he said.
However, Jannels pointed out that the association recognised that true influence was the result of prolonged, targeted and balanced engagement, where relationships have been built and trust has been established.
“The recent summit held by the Labour Party with mortgage brokers was certainly a positive thing; brokers play a crucial and pivotal role in this industry and any engagement with policy makers should be welcomed,” Jannels said.
Real change, however, happened, when all parties worked together to amplify the industry’s voice, and do so on a consistent basis with informed and considered discussion, he said.
“Trade bodies provide the mechanism to deliver this, and we will continue to strive to best represent our industry, our members, and most importantly, our customers,” Jannels added.
What value do you believe trade bodies have when engaging with policy makers? Let us know in the comment section below.
