This week’s headlines: Housing market ‘in crisis’ again and more than 100,000 greenhouses may be ‘unlivable’.
Check out these and other industry updates below:
Housing market ‘in crisis’ again: Industry reacts as PM resigns
Property industry figures have warned that the Prime Minister’s resignation could increase uncertainty in the housing market, with concerns that political instability could affect consumer confidence and borrowing costs.
Analysts say the financial and housing policies of the next Labor leader will now be looked at, warning that any extended leadership tussle or uncertainty over tax and property reform could delay transactions and investment, particularly at the top end of the market.
The government unveiled the First Consumer Isa program
The Government has launched a consultation on the First Time Buyer’s ISA to replace the Lifetime ISA, which proposes a product focused solely on helping people buy their first home.
The new scheme will remove early withdrawal penalties, pay a government bonus when the purchase of a property is completed and be open to first-time buyers of all ages.
However, questions remain about key details, including the price of the property and the annual contribution limit, with experts warning that this will be critical to the product’s success.
More than 100,000 greenhouse homes could be ‘unlivable’
More than 100,000 homes built for the relocation of offices may become uninhabitable during periods of extreme heat, according to Zurich UK.
The insurer warns that many converted properties were not designed for habitation and are at risk of overheating due to poor ventilation, large glass facades and outdated building standards, highlighting growing concerns as UK temperatures continue to rise.
Barclays and TSB rate cuts of up to 50bps
Barclays and TSB have announced mortgage rate cuts from tomorrow, with cuts of up to 40 basis points and 50 basis points respectively across selected residential and buy-to-let products.
The biggest cuts are focused on buy-to-let deals, while both lenders cut mortgage rates, continuing a recent trend of lenders re-pricing products as financing costs ease.
Landlords face a bill of £11,713 per property to meet EPC regulations
UK landlords face an average cost of £11,713 per property to upgrade homes to meet the proposed minimum EPC standards, with 60% holding at least one property below the required rate.
While many homeowners are planning to make improvements and many are exploring savings, borrowing or job grants, the findings highlight a major financial challenge as demand for more energy-efficient rental housing grows.
HSBC, Principality and Kensington have reduced prices
HSBC has cut mortgage rates by up to 10 basis points for first-time buyers, home movers, mortgages and buy-to-let products, while Kensington has cut buy-to-let rates by up to 25bps across its full range.
Officials will also cut interest rates by up to 50bps tomorrow, with a major cut in high-fixed loan-to-value deals.
The downgrade comes amid continued competition in the mortgage market, particularly in residential and home equity loans.
FCA boss warns that regulations cannot keep pace with AI
FCA chief executive Nikhil Rathi has warned that artificial intelligence is developing too quickly for existing regulatory frameworks to keep up, saying the law alone will struggle to keep pace with rapid technological change.
Speaking at the techUK conference, he said AI is already being used widely across financial services and is reshaping markets, requiring regulators to adapt by focusing more on system-wide risks, collaboration and innovation.
He also said the FCA is exploring its use of AI to improve market monitoring and detect misconduct more quickly.
Affordability is a hot spot for Gen Z homebuyers, says Barclays
Younger Gen Z buyers are increasingly prioritizing affordability over location when buying a home, with 24% now citing price as the most important factor compared to 19% for location, according to Barclays.
Research shows that many are compromising where they live or moving up to get on the property ladder, as affordability pressures and high mortgages continue to limit options despite growing demand for home ownership.
Nationwide reducing rates by up to 25bps as part of Fleet and Family BS reviews
Nationwide we have reduced mortgage rates by up to 25bps across the fixed rate range for new and existing customers, with reductions that support first-time buyers, home movers, mortgage customers and switchers.
Family Building Society has launched new interest-only tracker and HMO products while also reducing selected fixed rates, and Fleet Mortgages has revised its range of purchases to allow for new products, repayment incentives and a reduction in rates of up to 30bps.
Skipton makes a reduction in the size of the resi range
Skipton Building Society will reduce prices across its range of permanent homes from 23 June, with an average reduction of 0.18% and some reductions reaching 0.40%.
The lender is also introducing a new three-year fixed product at 95% LTV for existing customers, with Skipton saying the changes reflect improving market stability despite ongoing affordability pressures.
