The UK housing market’s exposure to global shocks is creating increasing risks for lending activity, with the Open Property Data Association (OPDA) warning that deeper structural reform is needed to support resilience.
The OPDA has urged the government to take a more coordinated, long-term approach to housing, cautioning that the current system leaves both the property market and lending environment vulnerable to external disruption.
Maria Harris, chair of the OPDA, said recent geopolitical tensions, including the Iran conflict, have once again exposed weaknesses that directly impact market liquidity and deal flow.
Mortgage rates have moved above 5%, lenders have withdrawn hundreds of products, and buyer enquiries have slowed, contributing to a more cautious lending landscape.
Harris says: “Just as the government has recognised the need for long-term energy security, we now need a long-term housing strategy that builds resilience into the system.
“Short term interventions can only soften the impact of global events. What we need is a modern, data driven property market that can withstand them.”
For bridging and specialist lenders, the OPDA’s warning points to ongoing structural inefficiencies that continue to slow transactions and increase execution risk, particularly in periods of volatility.
The government’s focus on increasing housing supply remains important, but the Office for Budget Responsibility has already forecast that the UK is unlikely to meet its target of delivering 1.5 million homes by 2030.
At the same time, the OPDA argues the wider housing system remains heavily reliant on manual processes and static documentation, contributing to delays that can affect completions and funding timelines.
DIGITAL REFORM AND MARKET EFFICIENCY
The association said improving resilience will require coordinated action across policy, infrastructure and industry adoption, with digital transformation seen as central to improving transaction speed and certainty.
Harris says: “Building more homes is only part of the solution.
“Just as energy resilience requires investment in the grid, housing resilience requires investment in the digital infrastructure that underpins the market.”
A recent report by the Department of Trade and Business found that Smart Data for homebuying could generate £14.1 billion in net social value and contribute £2.06 billion annually to UK GDP by 2043, making it the most economically impactful Smart Data use case identified.
While the government has identified Smart Data as a key part of its industrial strategy, the OPDA said further urgency is needed to ensure the housing market can continue to function effectively during periods of disruption.
Harris adds: “Global shocks will continue to test the UK housing market.
“While these events cannot be controlled, the efficiency and resilience of the property system can be strengthened.
“A modern, data driven property market will help maintain confidence, reduce delays and keep the market moving even during periods of uncertainty.
“The path forward is clear: collaboration, digital foundations and a long-term strategy that treats housing as critical national infrastructure.”
