This week’s top headlines: Chancellor considers replacing stamp duty with new property tax, and weighs up mansion tax for homes over £1.5m

Explore these and other major industry updates below:

Chancellor considers replacing stamp duty with new property tax: Report

Chancellor Rachel Reeves is weighing up plans for a new property tax on homes worth over £500,000, which could eventually replace stamp duty and, in the longer term, council tax.

The proposals under consideration include a national levy, paid on the sale of higher-value homes, and a potential local property tax to support council finances.

Officials are exploring phased implementation, with around a fifth of property sales likely to be affected. The ideas build on recommendations from a think-tank report, which argued such reforms would make the system fairer and easier for people to move. Treasury sources stressed their focus remains on economic growth rather than broad tax rises.

Chancellor’s stamp duty shake-up plans divide industry

Chancellor Rachel Reeves’ proposed property tax on homes over £500,000 and review of council tax has drawn mixed responses from the housing and mortgage sectors.

Supporters, including Propertymark and Rics, say reform could reduce barriers such as stamp duty, encourage mobility and make the system fairer, though they stress changes must support first-time buyers and avoid penalising vulnerable homeowners.

Critics, including ASK Partners and financial planners, warn the plans risk distorting the market, creating artificial price ceilings and adding complexity, while failing to tackle long-term issues like housing supply. Many argue that without building more homes, such tax reforms may offer only short-term fixes.

Barclays intros 15-minute mortgage applications for brokers

Barclays has overhauled its mortgage application process for brokers, introducing a faster, more intuitive system that can be completed in just 15 minutes.

The upgrade, shaped by broker feedback, streamlines affordability checks, agreement-in-principle certificates, and the overall application journey, with features such as drag-and-drop document uploads, larger file limits and real-time progress updates.

The bank says the revamp reduces admin, eliminates rekeying, and cuts application times by up to two-thirds, reflecting its wider commitment to supporting intermediary partners.

Reeves weighs up mansion tax for homes over £1.5m: Report 

Chancellor Rachel Reeves is reportedly considering ending the capital gains tax exemption on main homes worth over £1.5m, a move that could affect around 120,000 higher-rate taxpayers with bills of up to £200,000. Dubbed a “mansion tax”, the plan would mainly impact London and the South East, where such properties are most common.

Critics warn it could deter high-value sales, hit pensioners reliant on property wealth, and discourage downsizing, while adding to the burden of proposed stamp duty reforms. The measure, aimed at plugging a £20bn shortfall in public finances, is expected to be considered for the Autumn Budget.

TMG Mortgage Network takes on Belton

TMG Mortgage Network has made its “biggest hire” to date by appointing industry veteran Danny Belton as head of club and partner strategy.

Belton, who brings over 35 years’ experience including senior roles at Legal & General and Mortgage Advice Bureau, will focus on strengthening ties with lenders, providers and strategic partners while expanding the network’s industry collaboration.

Chief executive Scott Thorpe said the appointment signals TMG’s ambition to innovate and grow, while Belton described his role as an opportunity to build stronger relationships and create more opportunities for members.

NatWest launches additional borrowing ‘anytime’ during mortgage term  

NatWest has introduced new additional borrowing loans that let existing mortgage customers apply for extra funds of £10,000 to £500,000 at any point in their term, rather than only within a four-month roll-off window.

The lender has also enhanced its broker hub with features such as improved document uploads, upfront product selection, acceptance of foreign income, easier case tracking and clearer decisions in principle.

Head of intermediary distribution Nadine Edwards said the move aims to empower brokers and put them at the centre of NatWest’s home ownership growth strategy.

Barclays cuts rates with prices starting at 3.75%  

Barclays has reduced rates across several residential fixed products, with two-year purchase fixes starting at 3.75% at 60% LTV, down 11bps, and a notable cut to 3.79% at 75% LTV, down 22bps, both carrying a £899 fee. It has also trimmed two-year remortgage fixes at 75% LTV to 3.96% with a £999 fee.

Alongside the reductions, the bank has launched two new deals: a fee-free two-year purchase fix at 80% LTV at 4.05% and a fee-free two-year Great Escape remortgage fix at 80% LTV at 4.46%.

English rental affordability gap widens over rest of UK: ONS  

Private renters in England spend an average of 36.3% of their income on rent, well above the 30% affordability threshold, with Londoners hardest hit at 41.6%, according to ONS data.

Affordability is better in Wales and Northern Ireland, where households spend around 26% of income on rent, and markedly lower in areas like Hartlepool at just 15.9%. By contrast, rents in Kensington and Chelsea swallow 74.3% of local incomes.

Analysts warn that rapid rent rises, driven by strong demand, high mortgage rates and limited rental supply, are leaving many tenants struggling, with campaigners urging government action to curb costs and support investment in the private rental sector.

Inflation rises to 18-month high of 3.8% in July: ONS

UK inflation rose to 3.8% in July, up from 3.6% in June, driven mainly by higher air fares, though housing costs helped offset some of the increase.

The figure remains well above the Bank of England’s 2% target, with governor Andrew Bailey warning it could reach 4% by September despite slowing wage growth. The rise has cast doubt on the prospect of further base rate cuts this year, after the BoE’s narrow 5-4 vote to reduce rates to 4%.

Analysts warn that persistent inflation may keep borrowing costs higher for longer, affecting mortgage deals, while adding further pressure on households and complicating Chancellor Rachel Reeves’ plans ahead of the Autumn Budget.

Quantum Mortgages hires two BDMs 

Quantum Mortgages has strengthened its sales team with the appointment of Nik Sukara and Lichelle Samra as business development managers for the North of England and the Midlands, respectively.

Sukara brings expertise in specialist lending, while Samra will focus on overseas clients and complex buy-to-let cases. Both will join national account managers under chief commercial officer Harsha Dahyea, who welcomed their experience and energy to support the lender’s growth in these regions.