January 2020
Adam Tyler, Executive Chairman, FIBA
Optimism, Planning and a great time to write Business
There is a new feeling of optimism in the property market and the finance industry that supports it. Like many people in the country, we needed the feeling of stability to replace the uncertainty we have had for a couple of years, in whatever form that would take.
There has been little time to digest the full impact, but it is clear that developers and property entrepreneurs of every size will be dusting off plans, which will require funding. I am hopeful that the government's intentions towards the property and finance markets will become clearer when the first budget from this new administration is showcased in March.
Personally, I am feeling very optimistic about prospects for our sector this year and especially so for our Members, as FIBA continues to grow and build its proposition and services.
As we are likely to experience growing demand for finance from SMEs, one of my priorities is to continue to build our membership by offering the best specialist property finance alternatives via our growing lender partner panel. That panel itself already offers a strong variety of lending options, but I am determined to ensure that in response to the growing membership, FIBA's Members have access to the widest range of specialist property finance lenders that cover all potential scenarios.
In support of our lenders our move last year to appoint legal firms to our Professional Partner Panel with specialist knowledge of the commercial finance sector has been very successful. Many Members have remarked on the difference it has made to their ability to complete complex commercial funding deals by having a legal firm from our panel dealing with their projects. There will be more announcements during the year where FIBA will introduce new vetted lenders and legal firms to the respective panels.
There are three key areas that we will also want to lead on over the coming 12 months.
1. Specialist Property Finance Industry Forums. Our experience last year demonstrated the value of bringing lenders, brokers, solicitors, surveyors and insurers together. FIBA has always reached out to other trade bodies and these events were held jointly with the ASTL and proved the value of cooperation between trade bodies. There were three events in London last year and their success could be measured by the fact they on the last two events we had to turn delegates away. These joint events are so important to our industry because at the moment they the ONLY places where all interested parties can come together and FIBA has plans to take these events national in 2020.
2. Future Regulation. We all think it is coming, but it is up to us to prepare the ground so that we are ready. Areas such as fee transparency, default fees and disclosure, on which the FCA is already consulting, could be improved by early voluntary adoption and we also need to ensure that we are demonstrably providing better support across the industry to customers. Dealing with customers requires a unified approach with brokers and lenders airing their issues and establishing shared standards that ensure that customers are treated fairly.
3. Complaints Handling. There is a gap which could be affecting the take up of specialist property financial advice which is why FIBA wants to be at the heart of the discussions on dealing with our industry complaints that are received by lenders on brokers and by brokers on lenders. We must not forget how the legal advice process affects these customer issues, so we want to determine how we are able to provide guidance, support and up to date regulatory support to newcomers and experienced advisers alike. This does not have to be a standalone process, but a combined approach across our Industry with all interested parties playing a role in its formation and ongoing practical use, so that ultimately complaints from lenders or brokers are dealt with by an impartial body representing both sides.
In closing, I believe that the sector is primed for what could be a great year for specialist finance professionals across the UK. With the domestic political situation resolved for the next five years and the opportunity that a settled government can afford will help developers and SMEs to regain the confidence to expand their activities.
Certainly, there are probably challenges coming down the road, in the form of greater regulation, but as I have said, bringing the industry together to adopt a unified approach to some of the more pressing issues, will help to ease our way into a more harmonious acceptance of the extra oversight that we can expect.