Government calls in banks to tell them to make FTBs ‘top priority’

Government ministers will meet major banks to urge them to prioritise first-time buyers, using the Chancellor’s recent Leeds Reforms to expand high loan-to-value and loan-to-income lending.

Housing minister Matthew Pennycook and economic secretary Lucy Rigby will press lenders such as Barclays, HSBC and Santander to support more buyers with small deposits, following earlier talks with building societies.

The reforms, expected to help 36,000 extra first-time buyers in the first year, form part of Labour’s wider plan to boost homeownership and deliver 1.5 million new homes by the next Parliament.

Rayner resigns from government after stamp duty affair

Angela Rayner has resigned as Deputy Prime Minister, housing secretary and deputy Labour leader after admitting she underpaid around £40,000 in stamp duty on her £800,000 second home in Hove.

She referred herself to the Prime Minister’s standards adviser, who ruled she had breached the ministerial code despite claiming she had relied on legal advice.

In her resignation letter, Rayner accepted full responsibility, while Keir Starmer said she was right to act on the findings. Her departure is expected to trigger the Prime Minister’s first major reshuffle since taking office.

Mortgage advances tumble 24% due to stamp duty changes: BoE

Mortgage lending fell sharply in the second quarter, with advances down 24.2% to £58.8bn, the lowest in a year, as buyers delayed purchases following the reset of stamp duty thresholds.

However, new mortgage commitments rose 14.6% to £78.2bn, signalling stronger activity ahead. While remortgaging gained ground, lending to first-time buyers and high loan-to-income borrowing declined, reflecting tighter affordability.

Analysts say recent base rate cuts are boosting confidence, but affordability pressures, supply shortages and uncertainty over potential new housing taxes could weigh on the market in the coming months.

Housing secretary vows to ‘build, baby, build’ ahead of developers meeting

New housing secretary Steve Reed has pledged to “build, baby, build” as he prepares to meet major developers to drive forward planning reforms and boost construction.

With 1.4 million approved homes still unbuilt, Reed has vowed to leave “no stone unturned” in delivering the government’s target of 1.5 million homes over four years, the biggest programme since the 1970s.

His push follows weak ONS data showing a sharp fall in completions, well below the pace needed to hit targets, though housing starts have risen modestly. Reed succeeds Angela Rayner, who resigned last week.

Renter’s Rights Bill clears Commons hurdle as it prepares to become law

Parliament has cleared the way for the Renter’s Rights Bill to become law after MPs rejected almost 80 Lords’ amendments, with royal assent expected before the party conference season.

The Bill introduces sweeping reforms, including limits on rent increases, an end to fixed-term tenancies and Section 21 evictions, and a ban on bidding wars. Ministers argued that peers’ changes risked undermining key safeguards, though they conceded on a proposed requirement for renters to take out pet insurance.

While the government insists the legislation strikes a fair balance, critics warn it could drive landlords from the market and reduce rental supply.

Aldermore appoints Makanjee as CEO as Cooper steps down

Aldermore Group chief executive Steven Cooper will step down after three years to pursue a role outside banking, with Raj Makanjee appointed as his successor.

Makanjee, who spent 17 years at FirstRand leading its retail and digital strategy, previously worked at Accenture advising financial services clients.

Aldermore chairman Pat Butler said his experience made him well suited to drive the bank’s next phase of growth, while Makanjee pledged to build on the lender’s momentum. Cooper said Aldermore was “well placed and well set for the future.”

Cleary steps out of retirement to take interim Chetwood MD role

Chetwood Bank has appointed Alan Cleary as interim managing director of its mortgages division, succeeding Andrew Arwas.

Cleary, co-founder of Charter Court Financial Services and former head of several mortgage brands, retired in 2021 but has been chair of Chetwood’s mortgage advisory board since 2024. Arwas, a founder of Chetwood, led the launch of ModaMortgages and oversaw the CHL Mortgages acquisition.

Cleary said he was persuaded to return from retirement to support the bank’s growth in the buy-to-let market, with a permanent replacement for Arwas to be announced later.

Landlord tax hikes have added one million homes to market: Study

A Joseph Rowntree Foundation report finds that landlord tax reforms since 2016 have curbed buy-to-let activity, boosting first-time buyers and adding over one million owner-occupier households.

While the private rented sector has flattened, the study says rental pressures can be managed through regulation, and recommends pairing first-time buyer support with limits on speculative property investment.

The landlords’ lobby warns further tax hikes could push up rents and reduce rental investment.

Lloyds Banking Group adds £4bn to FTB lending

Lloyds Banking Group will make an extra £4bn available to high loan-to-income first-time buyers by increasing its First Time Buyer Boost product from 4.5 to 5.5 times income, raising maximum loans by around 22%.

Available to households earning £50,000 or more with a 10% deposit, the move follows Financial Policy Committee reforms allowing large lenders to extend more high loan-to-income mortgages.

Other lenders, including Nationwide, Santander and Accord, have also increased their lending ratios.

FCA consults on easing reporting for 11,000 broker firms

The Financial Conduct Authority plans further cuts to data reporting for 11,000 retail broker firms, proposing to move certain Retail Mediation Activities Return submissions from quarterly or bi-annual to annual.

The changes would affect returns on professional indemnity insurance, training and competence, and pension transfer advice. FCA chief data officer Jessica Rusu said the move focuses on essential information while reducing firms’ regulatory burden.

The consultation closes on 15 October, following earlier reporting reductions aimed at easing red tape across the sector.