This week’s prime headlines: Chancellor’s property tax proposals set to hit Londoners, and landlords face nationwide insurance coverage hike on rental revenue.
Explore these and different main trade updates under:
Chancellor’s property tax proposals set to hit Londoners: Compare My Move
Labour’s proposed property tax on houses bought for over £500,000 has sparked concern that it’ll hit Londoners hardest, with common costs within the capital properly above this threshold.
Compare My Move’s Dave Sayce warned the measure may speed up the development of residents leaving London, as sellers face better stress on costs and patrons draw back from properties close to the restrict.
Critics argue the tax could create distortions available in the market and drive extra individuals out of the capital, whereas trade voices stress that any reforms should assist first-time patrons and mirror regional variations. Some, nonetheless, dismiss the plan as a short-term repair unlikely to tackle deeper financial challenges.
Landlords face nationwide insurance coverage hike on rental revenue: Report
The Treasury is reportedly contemplating including National Insurance to landlords’ rental revenue in a bid to increase £2bn, as a part of wider efforts to strengthen public funds.
Critics warn the transfer would additional squeeze an already embattled buy-to-let sector, following years of tax modifications, tighter guidelines and rising prices, whereas additionally lowering the provision of rental houses. Industry specialists warning that greater landlord taxes are seemingly to be handed on to tenants by way of lease will increase, exacerbating affordability pressures at a time when demand is outstripping provide.
The proposal comes amid broader discussions on new property taxes, together with levies on high-value houses and property gross sales above £500,000.
FCA cuts knowledge reporting for 36,000 corporations to ‘cut back burdens’
The Financial Conduct Authority is chopping knowledge reporting necessities for 95% of authorised corporations, eradicating the necessity for round 36,000 corporations to submit nil returns and streamlining supervisory publications.
The regulator says the modifications will ease administrative burdens, simplify entry to info, and focus knowledge assortment on areas of actual worth, supporting its Consumer Duty overview and dedication to “smarter, simpler regulation”.
The transfer follows authorities stress on regulators to cut back pink tape and increase financial development.
(*29*) tax could hit present high-value houses market, says trade
Reports that the Treasury could introduce a so-called mansion tax on houses value over £1.5m, by ending capital features exemptions on major residences, have raised issues over market disruption in higher-value areas, notably London and the South East.
Experts warn the prospect may deter patrons, push downsizers to promote rapidly, and warp costs as sellers try to keep away from thresholds, whereas uncertainty could delay transactions. However, commentators stress the plans stay speculative, politically delicate, and much from sure to materialise.
Remortgaging ‘painful’ for offers signed earlier than 2022: Deutsche Bank
Deutsche Bank warns that householders remortgaging three-year-old offers this 12 months may see their month-to-month funds double, as charges bounce from under 2% to over 4% following the fallout from the 2022 mini-Budget.
While round 1.8 million debtors are anticipated to refinance in 2024, the financial institution says the sharpest rise in prices has already handed, with many on shorter offers having already moved to greater charges.
Those who secured mortgages after 2022 are seemingly to face little change when refixing, and though refinancing will squeeze some households, Deutsche Bank expects solely a modest drag on consumption, notably if mortgage charges proceed to edge down.
Truss warns of BoE ‘reckoning’, politicians ought to set base fee
Former Prime Minister Liz Truss has referred to as for politicians to take management of setting rates of interest, arguing that the Bank of England and Treasury have trapped the UK in a “doom loop” of excessive taxes, weak development and rising debt.
Speaking on Bloomberg’s Odd Lots podcast, she backed Donald Trump’s push to curb central financial institution independence, saying a “reckoning” is coming for international financial authorities. Truss criticised the Bank for benefiting asset holders whereas pricing youthful individuals out of homeownership, and attacked the OBR’s affect over fiscal coverage.
Her remarks come as UK borrowing prices hit close to 27-year highs and Chancellor Rachel Reeves prepares new tax rises, with critics warning that political management of charges would danger short-termism and market instability.
(*25*) retains crown as UK’s prime houses hotspot: OnTheMarket
(*25*) has held onto its place because the UK’s prime housing hotspot for a ninth consecutive quarter, in accordance to OnTheMarket, with robust purchaser demand additionally pushing Coventry into second place and Stoke-on-Trent into the highest ten.
By distinction, southern cities reminiscent of Brighton and Bristol slipped to the underside of the rankings, reflecting the continuing north–south divide in affordability and exercise.
OnTheMarket’s Jason Tebb stated patrons are favouring better-value northern areas regardless of current fee cuts and looser lending, because the excessive price of dwelling and rising property values proceed to problem affordability.
Reapit report highlights issues over Renters’ Rights Bill
New analysis from Reapit exhibits widespread unease within the property sector over looming regulatory modifications, with practically 60% of brokers, landlords and gross sales professionals citing compliance as their greatest concern for 2025.
The Renters’ Rights Bill, set to abolish fixed-term tenancies and no-fault evictions whereas tightening restore requirements and enforcement, is considered as notably difficult, with over 60% of respondents dissatisfied with the draft. Additional stress is coming from future EPC upgrades.
The authorities says it’s working to ease some burdens by bettering bailiff processes, introducing digital possession companies and exploring quicker lease assessments, however confidence within the reforms stays low.
English housing inventory filled with drafty spare rooms: Nationwide
Nationwide analysis exhibits that whereas England’s housing inventory has grown by 2.1 million houses previously decade to 25.4 million, greater than half of owner-occupied properties are under-occupied, with two or extra spare bedrooms.
In distinction, overcrowding is a much bigger challenge within the social rented sector, the place 8% of houses fall in need of bed room requirements. Commentators argue that encouraging householders to let spare rooms may ease housing pressures.
The report additionally highlights bettering vitality effectivity throughout the inventory, with social housing main due to stricter regulation, although inexperienced applied sciences like warmth pumps stay uncommon. Solar panels and EV charging factors have gotten extra widespread, notably in newer builds, pointing to a gradual shift in direction of extra sustainable housing.
FCA warns shoppers over rising scammer threats
The Financial Conduct Authority has warned shoppers to be vigilant after receiving practically 5,000 studies of scams impersonating the regulator within the first half of 2025, with 480 victims tricked into sending cash.
Fraudsters usually declare to get well misplaced crypto or mortgage funds, or cite courtroom judgments to extract funds, focusing on primarily these aged 56 and over.
Experts spotlight that the true scale is probably going greater and that financially weak people, notably retirees accessing their pensions, stay prime targets.
