New mayoral funding could boost buyer demand as affordable schemes ramp up
A major expansion of England’s devolution programme is set to give six new combined authorities long-term financial powers to accelerate housebuilding, a shift that mortgage advisers in established devolved regions believe could meaningfully influence demand once delivery gathers pace.
Under the Government’s latest settlement, Cheshire and Warrington, Cumbria, Greater Essex, Hampshire and the Solent, Norfolk and Suffolk, and Sussex and Brighton will each receive part of an annual £200 million funding package for 30 years. Mayors will have flexibility to channel the money into economic development, regeneration and, critically, social and affordable housing intended to widen access to homeownership.
Announcing the settlement, Miatta Fahnbulleh, minister for devolution, faith and communities, said: “This money will help transform communities for the better as part of our Plan for Change. It will help new mayors achieve what their areas’ want most, from building more of the 1.5 million homes this government has promised to improving the green spaces that locals love – this is how devolution improves lives across the country.”
Although the six areas are at the start of their devolution journey, advisers in Greater Manchester and the Liverpool City Region - where earlier waves of devolved funding have supported major regeneration and new-build programmes - say the effects for the mortgage market tend to emerge once development pipelines are visible on the ground.
Brokers in devolved regions expect demand to build gradually
Rhys Edwards of Brooks Financial in Manchester said: “I do think…the long term funding will boost supply and mean more certainty for the housing developers, which should help to speed up housing projects. An increased supply of housing should stimulate demand in the areas, as buyers will have more choice, more competitive pricing from the developers.”
He added that affordable schemes often draw in households who rely heavily on finance: “This area of the market typically relies heavily on mortgages so enquiries should increase.”
Liverpool brokers report similar patterns. “I expect these funding settlements to lift buyer enquiries. Secure public investment gives developers confidence to start schemes,” said Tom Wright of Liverpool Mortgages. “This increases the supply of new homes at price points that suit first time buyers. It also supports movers who look for modern homes with lower running costs.”
Yet advisers stress that while sentiment often improves early, mortgage activity itself follows the pace of construction. “More affordable and mixed-tenure homes coming through the system are likely to support higher mortgage enquiry levels,” said Julia Brownley of Manchester Money. “However, I don’t feel the impact [will] be immediate even with devolved funding and streamlined delivery, most homes completing in 2026 will stem from earlier funding rounds, meaning the more noticeable uplift in enquiries is likely to emerge in 2027/28.”
She added that wider economic conditions, including mortgage pricing and lender appetite, will remain decisive in shaping actual borrowing volumes.
Liverpool broker Jen Highton of The Mortgage Lady said the pattern is typically a gradual build-up rather than a sudden market shift. “In general, yes - new devolved housing funds tend to stimulate enquiries and mortgage demand, though the effect is usually gradual rather than immediate,” she said. Planning applications, site preparation and early developer marketing activity often prompt buyers to re-enter the market before completion figures materially rise.
Affordable schemes set to diversify borrower profiles
The expected expansion of affordable and mixed-tenure housing is also likely to diversify casework. Wright anticipates more shared-ownership and lower-deposit applications, while Edwards expects increased engagement from key workers and lower-income households transitioning from rental to ownership.
Highton points to growing complexity: “Mixed-tenure developments often attract clients with varied employment patterns … so case complexity can increase,” she said, adding that such schemes also generate future staircasing and remortgage cases.
For the six new mayoral areas, the task now is to convert long-term investment certainty into a clear construction timetable. But brokers say that if the trajectory mirrors what they have seen in Manchester and Liverpool, enhanced visibility of future supply and the signalling effect of committed public investment could meaningfully shape buyer behaviour before the first completions arrive.
