Coutts Head of Lending: Volatility Is the New Normal

On the latest episode of Housing Unpacked, I speak to Alex Webster, head of lending at private bank Coutts, about wealth, interest rates and the property market at a time when political uncertainty and market volatility have become part of everyday life.

Following a speech by Prime Minster-in-wating Andy Burnham this week, Alex explains what her clients think of the unfolding drama at Westminster as well as the recent rollercoaster-ride on financial markets that was triggered by the Middle East conflict. 

With the UK government unable to cut spending meaningfully or introduce broad-based tax rises, we are likely to see a repeat of last year’s smorgasbord approach in the autumn Budget, featuring a range of smaller wealth-based tax rises.

Although that will lead to another summer of speculation, Alex said her clients are becoming hardened to the uncertainty.

“Our clients are almost expecting volatility to be the new normal,” she said on the podcast. “It’s something they are going to be watching very closely but they will carry on thinking about the long-term picture.”

We also discuss the importance of exchange rates for overseas buyers, how the bank responded to the recent mortgage rate volatility, and the changing requirements of buyers in prime and super-prime markets.

For a fuller analysis of Andy Burnham’s speech, as well as the latest signals from the prime London property market, please see my note on Monday next week.