🏦 Economic & Regulatory Landscape
Bank of England Maintains Vigilance on Inflation. Bank of England policymaker Megan Greene expressed concerns over the UK’s persistent inflation, which remains above the 2% target. Despite a recent rate cut to 4.25%, Greene highlighted that private-sector wage growth is still too high, potentially delaying further rate reductions. Read more
Consumer Credit Act Under Review. HM Treasury has initiated Phase 1 of its consultation to reform the Consumer Credit Act 1974. The proposed changes aim to modernize the UK’s consumer credit regulatory framework by simplifying information requirements and aligning them with digital advancements. Read more
🏠 Housing & Mortgages
Mortgage Guarantee Scheme Nears End. The UK government’s mortgage guarantee scheme, which supports 95% loan-to-value mortgages, is set to conclude on 30 June 2025. Despite earlier promises for a new scheme, no replacement has been announced, leaving first-time buyers facing uncertainty. Read more
House Prices Rebound in May. UK house prices increased by 0.5% in May 2025, recovering from a 0.6% drop in April. The average property price now stands at £273,427, nearing the 2022 peak. Factors contributing to this rise include falling mortgage rates and strong demand, despite affordability challenges for first-time buyers. Read more
🚗 Car Finance Compensation Developments
FCA Plans Consumer-Friendly Redress Scheme. The Financial Conduct Authority (FCA) is preparing a compensation scheme for consumers mis-sold car finance agreements before January 2021. The scheme aims to be swift and accessible, potentially involving up to £44 billion in industry payouts. A Supreme Court ruling expected in July will influence the scheme’s structure. Read more
💳 Consumer Credit & Fintech Updates
Regulation of Buy Now, Pay Later Services. Starting next year, the UK will implement regulations on Buy Now, Pay Later (BNPL) lenders to enhance consumer protections. The new rules will require affordability checks and faster refunds, aligning BNPL services with other credit products. Read more
FCA Targets Illegal Finfluencers. The FCA has led an international crackdown on unauthorized financial influencers (“finfluencers”) promoting illegal financial products on social media. The initiative aims to protect consumers from misleading financial advice online. Read more
📈 Market & Investment Highlights
FCA Considers Overhaul of Fund Value Reports. The FCA is contemplating significant changes to the reporting requirements for UK asset managers, potentially scrapping the mandatory annual value assessments introduced in 2019. The proposed changes aim to reduce costs and duplication of efforts under the Consumer Duty regime. Read more
