This week’s top headlines: Lloyds Banking Group bolsters housing development team and Paradigm calls for mandatory regulated advice for all FTBs.

Explore these and other major industry updates below:

Lloyds Banking Group bolsters housing development team

Lloyds Banking Group has strengthened its housing development team with a new structure and two senior appointments aimed at supporting affordable housing and new-build home ownership.

Gina Burrows has taken up the newly created role of affordable housing partnerships manager, while Gemma Clark has joined as national housing development manager to support homebuilders, brokers and regional housing initiatives.

The changes reflect Lloyds’ focus on improving access to housing and strengthening relationships across the affordable housing and new-build sectors.

Construction shrinks at fastest rate for six years in May: S&P

UK construction output contracted in May at its fastest pace in six years, marking a 17th consecutive month of decline, with housebuilding remaining particularly weak.

Rising borrowing costs, inflationary pressures, higher material costs and economic uncertainty linked to the Middle East conflict have all weighed on activity.

Industry figures warn that, despite improving funding conditions, meaningful planning reform will be essential if the government is to meet its housebuilding ambitions.

Paradigm calls for mandatory regulated advice for all FTBs

Paradigm Mortgage Services has called for mandatory mortgage advice for all first-time buyers, arguing that the growth of execution-only lending and recent regulatory changes increase the risk of poor consumer outcomes.

The firm says first-time buyers are particularly vulnerable due to limited experience, affordability pressures and protection gaps, and believes advice should be a minimum safeguard when making one of the largest financial commitments of their lives.

The proposal has received backing from the Association of Mortgage Intermediaries, which argues that advice is essential to help first-time buyers navigate the complexities of home ownership.

Protection myths leave borrowers dangerously exposed

New research from LifeSearch and HomeOwners Alliance has revealed widespread misunderstanding around income protection, with most policyholders incorrectly believing it would pay out if they were made redundant.

The study found many homeowners also overestimate the level of support available through statutory sick pay and employer benefits, potentially leaving them financially vulnerable if illness or injury prevents them from working.

The findings highlight the importance of advice to help homeowners understand what protection they have in place and where gaps in cover may exist.

Leeds BS appoints Nicholls as BDM

Leeds Building Society has appointed Lee Nicholls as business development manager, supporting intermediaries across the Midlands.

Nicholls brings more than a decade of financial services experience, including time as a mortgage broker and business development roles with building societies, and will focus on strengthening broker relationships and supporting positive customer outcomes.

The appointment reflects Leeds’ continued investment in its intermediary proposition and regional broker support.

HSBC, Leeds, Moda and Molo join this week’s rate cuts

Several lenders including HSBC, Moda Mortgages, Leeds Building Society and Molo have cut mortgage rates across residential and buy to let products, with some specialist deals starting from the mid 3% range.

The moves follow a wider wave of reductions from major lenders, suggesting increased competition in pricing across the market.

Paragon and LendInvest lowers BTL rates

Paragon Bank has reduced its buy-to-let mortgage rates by up to 20 basis points across two- and five-year fixed deals, with pricing now starting from 3.55% for green products at up to 75% loan-to-value.

It has also maintained a wide range of fee options to suit different landlord strategies. LendInvest has also cut its buy-to-let rates by up to 10bps, with its lowest deals now from 3.84% across new business, product transfers and bridge-to-let lending.

Cambridge & Counties Bank promotes Parr to head of bridging finance

Cambridge & Counties Bank has promoted Stephen Parr to head of bridging finance to strengthen its focus on growing demand for short-term property lending.

The role will support bridging and bridge-to-term solutions of up to £5 million per property over a 24-month term, helping borrowers transition into longer-term finance.

The bank says the move reflects increasing demand for flexible, fast property funding with clear exit strategies.

Scots face ‘unsellable’ homes and mortgage refusals over insulation

Thousands of homeowners in Scotland are being warned they may struggle to sell or remortgage properties fitted with spray foam insulation, with lenders increasingly treating it as a risk and potentially refusing mortgages altogether.

Around 250,000 UK homes could be affected, with removal costs running into thousands of pounds and many cases linked to past energy-efficiency schemes.

Experts and Trading Standards are advising homeowners to seek independent surveys and be cautious of unsolicited removal services.

London tenants paying five months’ salary on rent

New analysis shows London tenants are now spending around 42% of their income on rent, meaning more than five months of their annual salary effectively goes straight to landlords.

Campaign group Generation Rent has labelled the situation “Cost of Rent Day”, highlighting that rent in the capital is significantly higher than the England average and far above the government’s affordability benchmark of 30%.

The figures underline a long-term rise in rents relative to incomes, with housing costs also linked to higher poverty rates and worsening inequality across London.