This week’s high headlines: Councils pay over £30m in incentives to landlords to home homeless and November Budget might push base price minimize into Christmas.
Explore these and different main business updates under:
Two-thirds of homebuyers confused by dealer charges
Considerable doubt’ over additional price cuts: BoE Bailey
The Bank of England governor, Andrew Bailey, has warned that uncertainty stays over the timing of future rate of interest cuts, regardless of the MPC’s current quarter-point discount to 4%, its lowest since March 2023. He instructed MPs that whereas charges are seemingly to fall additional, the tempo is unclear, echoing market expectations of no additional cuts this yr.
The MPC narrowly voted 5–4 in favour of the minimize, with members divided: Alan Taylor, who initially sought a bigger discount, argued the economic system is nearing a “comfortable touchdown” however stays fragile, whereas Megan Greene opposed any minimize, citing persistent inflation dangers. With inflation edging increased, policymakers are cautious about transferring too rapidly.
Councils pay over £30m in incentives to landlords to home homeless
Research by Generation Rent exhibits councils spent over £31m in 2024/25 on one-off incentive funds to non-public landlords to home homeless households, with London authorities accounting for £24m of the whole. Payments have risen sharply since 2018, with extra councils now paying £10,000 or extra per case.
Critics argue this technique wastes public cash and displays a damaged rental market, as councils wrestle with hovering rents and frozen housing allowances. Landlord teams, nonetheless, stress that the non-public rental sector stays important for weak tenants amid a scarcity of social housing.
November Budget might push base price minimize into Christmas: Deutsche Bank
Deutsche Bank has warned that the Bank of England might delay any additional rate of interest minimize till December, as November’s Budget may immediate policymakers to look forward to readability on fiscal plans and wage developments.
The financial institution nonetheless expects yet one more minimize this yr, however says the timing is more and more unsure, with inflation rising to 3.6% and forecast to hit 4%. The MPC, which lowered charges to 4% final month, meets once more in September, November and December.
Meanwhile, Chancellor Rachel Reeves is anticipated to use the Budget to elevate up to £20bn, with attainable property tax reforms into account.
Bond yields hit 27-year highs, however solely long-term mortgage prices rise: Brokers
UK borrowing prices have risen to their highest in practically three many years, with 30-year gilt yields hitting 5.698% forward of November’s Budget, the place Chancellor Rachel Reeves is anticipated to define tax rises of up to £20bn.
While buyers worry such measures may stifle development, mortgage brokers notice the surge primarily impacts long-term offers, making ten-year fixes pricey, whereas two- and five-year charges stay comparatively aggressive.
With most debtors favouring shorter-term merchandise, specialists say the selection now rests between decrease rapid prices and paying a premium for long-term certainty.
Market faces two months of uncertainty till Budget is about: Coventry BS
Coventry Building Society has urged Chancellor Rachel Reeves to verify the Autumn Budget date, warning that ongoing hypothesis about tax reforms is unsettling the housing market.
Rumoured adjustments embrace stamp responsibility reforms, ending capital positive aspects exemptions on high-value houses, and increasing National Insurance to rental earnings.
Coventry BS mentioned uncertainty is already disrupting purchaser and vendor behaviour, with some delaying purchases and others dashing gross sales, risking chain collapses. The society pressured that readability is urgently wanted to restore confidence and stability out there.
Changes to automotive finance guidelines provides hundreds to house loans: Coventry BS
Coventry Building Society says patrons with automotive finance can now borrow considerably extra on mortgages than six months in the past, thanks to looser affordability guidelines following up to date FCA steering.
In March, a £345 month-to-month automotive fee minimize a single borrower’s mortgage capability by over £18,000, however now it reduces borrowing by simply £5,000, liberating up practically £13,000 extra for housing. For joint patrons, the affect has additionally eased markedly.
Coventry BS says the shift gives better flexibility for balancing automotive possession with homebuying, although mortgage repayments nonetheless have an effect on affordability.
HMO properties double annual earnings of normal lets: Aldermore
New analysis exhibits landlords with homes in a number of occupation (HMOs) earned nearly double the earnings of normal lets final yr, averaging £120,283 per property in contrast with £61,846 for non-HMOs.
Aldermore mentioned the figures underline HMOs’ robust yields, with the next proportion of landlords on this sector attaining six-figure returns.
While HMOs function prominently in top-earning portfolios, they arrive with stricter rules and better compliance prices, together with planning guidelines and security checks.
Primis appoints Clayton as regional gross sales director in Southwest
Primis has promoted Jade Clayton to regional gross sales director for the Southwest, succeeding Claire Madge, who has moved to Embrace.
Clayton, beforehand recruitment growth supervisor and space supervision supervisor, brings expertise as a former mortgage dealer. She will report to new gross sales director Neil Hoare, who joins from HL Partnership to lead gross sales at each Primis and TMA.
Chief distribution officer Emma Hollingworth mentioned the strengthened crew displays the community’s dedication to members, praising Clayton’s expertise and match for the function. Clayton mentioned she seems ahead to increasing her work with brokers and new recruits.
HSBC declares 5.5% LTI for FTBs
HSBC UK has boosted its mortgage coverage by providing first-time patrons loans of up to 5.5 occasions their earnings, offered they meet minimal earnings thresholds of £35,000 for single candidates and £55,000 for joint debtors.
Head of mortgages Oli O’Donoghue mentioned the transfer goals to assist patrons dealing with excessive deposits and rising costs, whereas stressing that affordability checks stay central to lending choices.
