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Chancellor Rachel Reeves’ Budget 2025 unveils a ‘mansion tax’ for properties over £2 million and increased income tax on rental earnings, impacting UK homeowners, landlords, and those navigating complex financial situations.

UK First-Time Buyers are increasingly turning to lower-deposit mortgages and external support to achieve homeownership, as highlighted by Barclays’ latest property insights amidst ongoing affordability challenges.

UK GDP grew just 0.1% in the three months to September—half of what analysts predicted. The slowdown, paired with a cooling jobs market, increases the likelihood of another base rate cut in December, which could reduce mortgage costs for borrowers.

HSBC has raised its mortgage lending cap to 6.5× annual income, up from the standard 4.5× limit, giving high earners access to over £200,000 in additional borrowing power. However, the offer is only available to Premier customers earning £100,000 or more, highlighting growing competition among lenders as rate cuts edge closer.

The Bank of England has kept interest rates at 4%, as inflation steadies at 3.8%. Borrowers now face a narrow window to secure favourable mortgage deals before potential cuts reduce rates further.

A new mortgage price war has erupted ahead of the November Budget, with major high street lenders cutting fixed-rate deals to attract borrowers amid a subdued housing market. Falling swap rates and gilt yields have allowed banks to reduce borrowing costs, fuelling fresh competition across the sector as lenders vie for new business.

Markets now predict a 70% chance of a Bank of England rate cut before Christmas after inflation unexpectedly held at 3.8% for a third consecutive month. The steadiness in prices has renewed hopes that borrowing costs could begin easing as early as December.

Lenders across the UK mortgage industry have voiced strong support for the government’s £8 billion plan to reform the home buying and selling process — a move expected to reduce the one-in-three property transactions that currently fall through, costing consumers and the economy hundreds of millions each year.

The government’s decision to maintain current Stamp Duty thresholds through 2025 has been welcomed by homebuyers and landlords alike. Experts suggest the extension will help sustain market activity and provide much-needed stability amid ongoing affordability pressures.

Up to 8,500 Affordable Homes across England could remain unoccupied, as more than 700 developments face delays due to reduced funding from housing associations. The Home Builders Federation warns that the slowdown threatens small builders and could worsen the housing shortage.

The number of houses in multiple occupation (HMOs) across England has risen by 2.3% over the past year, reaching nearly 473,000. But while some regions and local authorities have seen huge increases, others recorded steep falls, reflecting stark regional disparities in the sector.

London and southern England buyers are enjoying the largest boost in affordability, with monthly mortgage savings of up to £181 compared to last year, as asking prices soften and mortgage rates fall.

UK construction activity fell again in August, marking eight straight months of contraction, as housing and civil engineering continued to struggle, according to S&P Global’s Construction PMI.

UK construction activity fell again in August, marking eight straight months of contraction, as housing and civil engineering continued to struggle, according to S&P Global’s Construction PMI.

Limited company ownership is increasingly shaping the buy-to-let market, with one in five landlords now incorporating, according to Pegasus Insight.

UK remortgage completions surged by 71% in July 2025, with two-year fixed-rate deals becoming the most popular choice among borrowers. While many faced higher repayments, short-term certainty and equity release opportunities drove activity — highlighting shifting homeowner strategies across regions.

Two leading UK lenders have cut rates below 4% following the Bank of England’s decision to lower its base rate to 4% in August 2025. First-time buyers could now secure deals from as low as 3.73%, while easing affordability rules and increased housing supply are fuelling competition across the mortgage market.

The Bank of England has reduced its base interest rate to 4% in August 2025 — its fifth cut in a year. While the move brings potential relief for borrowers, policymakers have warned that rising food prices could drive inflation back up, creating a challenging environment for future rate decisions.

Residential property transactions rose by 13% in June 2025, marking a possible shift in buyer confidence. As affordability improves and the effects of stamp duty reform settle, experts say a more stable property market may be emerging.

Targeted stamp duty relief for older movers could free up over 500,000 homes in just 12 months, new research suggests — easing pressure on the UK housing market and increasing availability for first-time buyers and growing families.