There’s big news out of Mansion House this week, as Chancellor Rachel Reeves announced a series of changes aimed at making it easier for people to get on the housing ladder. From loosening the income cap on mortgages to making the mortgage guarantee scheme permanent, it’s clear the government wants to boost homeownership—especially for first-time buyers.
It all sounds promising—but what does it mean in practice? The industry’s already weighing in:
Nick Hale, CEO at Movera, said:
“Rachel Reeves’ announcement marks a clear shift in housing policy, with measures that could help thousands more first-time buyers onto the property ladder. Increasing lending above 4.5 times income, expanding products like Nationwide’s ‘Helping Hand’, and making the Mortgage Guarantee Scheme permanent are all designed to stimulate activity at the entry level of the market. The result could be an estimated 36,000 additional transactions in the first year alone.
At Movera, we see this as both a welcome boost and a critical challenge. We’ve long recognised that the homebuying process needs a fundamental shift. That’s why we’re investing heavily in digital infrastructure, automation, and connected systems to create a smarter, faster, and more transparent experience for both professionals and consumers. The housing market is evolving, and we believe technology must evolve with it — not just to keep up, but to lead the way.
And this should be the ultimate wake-up call for the industry. More transactions mean more pressure on the people and processes that keep the housing market moving — brokers, conveyancers, and lenders alike. Many of these professionals are already working under strain, often relying on outdated, manual systems that cannot scale to meet growing demand. The industry as a whole needs to act. This should be the moment we collectively commit to modernising how homes are bought and sold. If we want to deliver on the promise of greater access to homeownership, we need to fix the machinery behind it.
This isn’t just about helping more people buy homes — it’s about making the system ready for the future.”
Dame Debbie Crosbie, Nationwide CEO, said:
“The Chancellor has set out an extensive package of pro-growth reforms that will be well received across UK financial services.
This includes welcome news for the housing market, with the Chancellor confirming plans for greater flexibility in higher loan to income lending. At Nationwide, first-time buyers will be subject to reduced minimum income requirements from today [Wednesday 16 July], giving consumers an immediate and tangible benefit from the reforms.
Overall, the package has real substance and clear, positive intent. We will continue to work closely with Government as it takes steps to promote inclusive growth across the UK.”
Ben Thompson, Deputy CEO, Mortgage Advice Bureau:
“We welcome this latest announcement from the Chancellor, which marks a bold and pragmatic step towards tackling the barriers facing first time buyers. By extending mortgage access through lower deposit requirements, fairer affordability checks, and greater lender flexibility, the government is recognising the real financial challenges that aspiring homeowners face.
Although it was disappointing not to see more support for the rental market in the form of track record payments, we’re hopeful for further developments around this in autumn. Our recent research underscores the significant potential and strong purchase appetite from the rental market, with 56% of UK renters stating they’d buy their first home if the mortgage repayments aligned with their rent.
Nevertheless, this is a significant and very welcome move towards a more inclusive housing market, and a financial system that better reflects how people actually live and spend today. We look forward to working with policymakers and lenders, and of course aspiring first time buyers, to ensure these reforms translate into real opportunities for buyers across the UK.”
Paul Adams, Sales Director at Pepper Money, comments:
“The Chancellor’s announcements mark a positive step toward making home ownership a reality for thousands more people. We welcome the Government’s decision to make the low-deposit Mortgage Guarantee Scheme permanent, supporting first-time buyers to take their first step.
This will increase the availability of high loan-to-value mortgage products. At Pepper we’re already seeing growing demand for 90% LTV mortgages, driven by rising house prices and economic pressures.
Alongside the Bank of England’s recommendation to allow individual lenders to issue more than 15% of their new mortgages at higher than 4.5x loan-to-income, the move toward simplified mortgage lending rules will make home ownership more accessible for those wanting to get on the property ladder.
While we welcome the flexibility that these reforms will bring for lenders and borrowers, it’s vital that these changes are implemented responsibly to support good customer outcomes in line with the Consumer Duty. More work is required to make home ownership a realistic aspiration for all, but the announcements in the Chancellor’s Mansion House speech are undoubtedly a step in the right direction.”
