UK Labour Government and Housing Market

07/05/24 • 25 min

In this episode of Morningstar DBRS’ “European Securitisation Insights” podcast, host Mudasar Chaudhry, who leads our European Structured Finance Research team, is joined by Adriana Alvarado, Senior Vice President, Sector Lead of Global Sovereign Ratings and Ketan Thaker, Managing Director of European RMBS & Covered Bond Ratings to discuss the impact of the new Labour government on the UK’s housing market.

The episode explored the shift to the newly elected Labour Party-led government after 14 years of Conservative Party-led rule, the election result’s impact on the UK economy, and the key takeaways from this change. As always, house prices and housing availability are important to UK voters. The panel discussed the views presented in the pre-election Labour Party manifesto, particularly those around housing plans for the next parliament. Past governments have repeatedly failed to meet housebuilding targets, and the speakers examined whether the problem lies in the number of houses built or other factors at play. The panel also delved into our credit view on how the new government’s proposed policies could affect the performance of UK residential mortgage-backed security (RMBS) transactions.

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Previous Episode

Global ABS 2024

In this episode of Morningstar DBRS’s “European Securitisation Insights” podcast, host Mudasar Chaudhry, Head of European Structured Finance Research, collates the thoughts of Morningstar DBRS analysts featured at this year’s 2024 Global ABS conference in Barcelona:

Ronja Dahmen, Vice President, European RMBS & Covered Bond Ratings spoke on the Day 1 panel European Residential MBS

Christian Aufsatz, Head of European Structured Finance, moderated the Day 2 Issuer Roundtable

Mudasar Chaudhry, Head of European Structured Finance Research, moderated the Day 2 Investor Roundtable

Sebastiano Romano, Vice President, European NPL Ratings, spoke on the Day 1 European NPL/RPL Supply panel

Related research is available at the following link: https://go-dbrs.morningstar.com/GlobalABS2024

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European Residential Solar ABS

In this episode of Morningstar DBRS’ “European Securitisation Insights” podcast, host Mudasar Chaudhry, who leads our European Structured Finance Research team, is joined by Rehanna Sameja, Senior Vice President, European RMBS & Covered Bond Ratings and Jonathan Riber, Senior Vice President, Sector Lead U.S. ABS Ratings, Consumer Assets, to discuss the solar energy sector.

The episode covered the key components of our recently published commentary, "Sun is Beginning to Shine on European Residential Solar ABS" available at https://dbrs.morningstar.com/research/433299, and our global "Rating Solar ABS Transactions" methodology available at https://dbrs.morningstar.com/research/434677. The panel also discussed recent advances in the solar energy sector, the state of the solar asset-backed securities (ABS) securitisation market, the unique traits of solar ABS contracts, and their probable influence on credit considerations. The panel also looked at divergence across different solar contract types and explored analytical considerations for rating them accordingly.