Today in Money: rumours of a particular change in the upcoming budget has landlords taking action – and could impact the buy-to-let market. Meanwhile, first-time buyers are facing rising costs, especially in one part of the country.
Friday 10 October 2025 06:21, UK
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Every Friday, we take an overview of the mortgage market with industry experts and round up the best rates with Moneyfactscompare.co.uk. 
Concerns over the upcoming budget has buyers, sellers and landlords acting more cautiously when it comes to making moves in the property market, experts have told the Money blog.
For landlords, the concern is a rumour that the chancellor could levy national insurance contributions on pre-mortgage profits. 
At the moment, money made through rent is not considered “earned” income like salary or self-employment earnings, meaning it is exempt from NICs. 
But if this were to change, landlords would have to pay much more in tax.
In anticipation of the rumoured change, some landlords have set up limited companies for their buy-to-let portfolio to reduce their tax bill, according to Moneyfacts. 
Rachel Springall, finance expert at Moneyfacts, says: “Unlike other reforms that gradually hit landlords, this could become a significant move to lead more landlords into setting up a limited company for their buy-to-let property portfolio.
“This has been a growing trend over recent years due to reductions in mortgage interest tax relief, which was gradually phased out between 2017 and April 2020.” 
The potential move has been reflected in a boost in the number of buy-to-let mortgages available to limited companies. 
There are now 776 two-year and 954 five-year fixed options available to landlords, a combined total of 1,730 options – up from 841 in October 2023, Moneyfacts found. 
The cost of a deal has also fallen over the past two years, with the average two-year fixed rate now 5.04%, down from 6.53% in October 2023. Year on year, the two-year rate is down from 5.54%.
“The growth in product choice should be welcomed in a market that is consistently facing external pressures, but the rumour mill churn in the run-up to the budget could be causing concern,” Springall adds. 
“Wider economic pressures continue to impact the rental market, so there is a careful balancing act for landlords to both meet their desired profit margin, while also ensuring they charge their tenants fairly. Ultimately, keeping valuable tenants and keeping properties occupied will be essential in the months ahead.”
Here’s a look at the best buy-to-let rates on the market… 
The lowest buy-to-let rates may carry both a flat product fee and an arrangement fee that is based on a percentage of the mortgage advance, so a best buy package may be more suitable if you are looking to save on the upfront cost of any deal. 
Here’s a round-up of the top ones on offer… 
First-time buyers seeing prices rise more steeply
House prices for first-time buyers are rising more steeply than other sections of the market – with an average first home now costing £229,000, Zoopla has found. 
This represents a 2.4% increase in the past year – though it’s much bigger in some parts of the country. 
In the North East, prices for first-time buyers have increased by an average of 10.2% annually, according to the analysis.
In London, prices have fallen by 2.4%. Still, getting on the property ladder there costs around £420,600. 
Richard Donnell, executive director at Zoopla, says affordability challenges are “acting as a drag on house price growth across southern England”.
“The variation in affordability explains why first-time buyers across England are looking to buy three-bed houses, while in London, one and two-bed flats remain the primary target for those buying their first home,” he says.
We are signing off for the day now but wanted to give you one last tip – and you’ll need to act quickly on this one.
EDF’s Sunday Saver challenge, which rewards customers for shifting more of their energy usage away from peak times, returns this month.
The more you shift during the week, the more free electricity you can earn.
Registered customers will get up to 16 hours of free electricity to use between 8am and midnight on the following Sundays: 
To get the maximum amount, you would need to shift 50% of your usage outside the period between 4pm and 7pm during the week. 
EDF says households can earn free electricity by making “small changes” to their energy habits, such as putting the dishwasher on in the morning or batch cooking meals. 
The time of day you can use your free electricity depends on the amount you’ve earned.
You won’t need to do anything different to qualify – EDF will just add a credit to your account.
To take part, sign up for the challenge via your account by 11.59pm on Sunday 12 October. 
Save money on your energy bills
If you’re thinking of ordering some groceries via a delivery app this evening, read this post first.
Which? found shoppers who ordered everyday essentials from Deliveroo, Just Eat or Uber Eats could be paying at least 20% more, with some items more than double the price.
It compared the prices of 50 popular items from Asda, Morrisons, Sainsbury’s and Waitrose against the three food delivery apps.
On average, it found that Sainsbury’s Nectar members had the most to lose by using a delivery app, as the supermarket does not apply its loyalty card discounts.
Sainsbury’s loyalty scheme customers would see the biggest mark-up with Uber Eats, where they would pay an average 45% more. 
Birds Eye Cod Fish Fingers (280g) were £3 with a Nectar card, but £6.25 through all delivery sites. Quorn Chicken Nuggets (300g) were £1.75 for Nectar card-holders but £3.50 through the sites.
Here’s a look at some of the other mark-ups Which? found: 
What did the supermarkets have to say? 
Sainsbury’s said: “Each of our services have clear, competitive pricing and regular promotions, helping customers to make the choice that’s best for them.”
Tesco said: “Whoosh is our superfast delivery service, getting groceries to customers’ doors in as little as 20 minutes. The prices for groceries delivered by Whoosh reflect the extra costs of rapid delivery and provide market-leading value when compared with other major services providing rapid grocery delivery.”
Morrisons said: “These premium services do come with some additional costs in order to offer fast, convenient deliveries which many of our customers appreciate. That said, our partners regularly run promotions offering free delivery offers or directly matching their prices to those found in our stores.” 
Waitrose said: “Delivery apps offer a quick and convenient service. Prices are clearly marked, and reflect the costs involved in running this service, including assembling and packing orders.” 
Uber Eats said: “These findings fail to reflect the breadth of inventory and deals available for our customers on Uber Eats. Every Uber Eats partner sets their own prices and we have clearly flagged in-store price match ranges available on hundreds of products.” 
Deliveroo said: “Deliveroo provides groceries fast and on demand, giving people the convenience they value. We encourage all of our partners to set fair pricing and we are always looking at new ways to ensure great value for our customers.” 
Just Eat said: “While prices are set by our grocery partners we ensure customers can access great value, as well as unbeatable convenience.” 
Amazon has recently launched a new shopping platform in the UK that’s trying to take on cheap online Chinese-owned retailers, like Shein and Temu. 
The online retail giant has rolled out Amazon Haul, which offers the majority of products for less than £10.
Where can you find it? 
You can find the service in the Amazon app or website. It will appear as a tab under the menu at the top of the screen under the search bar. 
If you can’t spot it, you can search for Haul to find the correct page. 
It has its own shopping experience, away from the main platform, meaning you can add products to a basket that is separate from your main Amazon account.
It’s important to know that your Amazon Prime member benefits cannot be applied to any Amazon Haul purchases. 
This means while you might be able to access lower prices, you won’t be able to get next-day or fast delivery. 
What are the prices like? 
Amazon says all goods are priced at £20 or less, with the majority available for £10. 
Shoppers can also look out for items with the “crazy low” price badge, signalling that they could cost as little as £1. 
At the time of writing this post, some of the products we found include: 
Various savings are available, including 5% off orders over £50, and 10% off orders over £75. 
In terms of delivery, you can get it for free on orders over £15, or you have to pay a standard delivery charge of £2.99. 
Amazon said it has been able to offer “ultra affordable” prices by shipping products to shoppers from outside the UK. 
Next day delivery is not available, so how long does it take?
Prime members will have to get used to waiting for their deliveries, with most purchases on Amazon Haul taking around two weeks. 
The platform warns that shipping times may vary depending on where the customer lives. 
What about refunds and returns? 
You will be able to return items for free within 15 days of receiving them. 
To do this, you can take your package to a drop-off location, such as a Post Office, Asda or Morrisons, which will label and ship it. 
We had a look at the Amazon Haul terms and conditions, and they say stores may issue a refund without requiring you to return the product, but this is at their discretion. 
Refunds to an Amazon gift card can take between two and four hours to land, once they have been processed. 
If you are having the money returned to a credit or debit card, it can take up to seven business days. 
Job advisers will be placed in GP surgeries across several parts of England in a drive to get sick people back into work. 
Advisers will work with healthcare teams and mental health services to support unemployed people under the government programme. 
Nine areas will benefit from the Connect to Work scheme:
The scheme will also offer some places virtual reality immersive classrooms to help people with interview practice, workshops, and funding support to get parents access to affordable healthcare. 
You can see more about the funding each area is getting – and the number of people the government think it will support below…
People with a disability, health condition or who face complex barriers to work can access the assistance. 
They can self-refer or be referred by healthcare professionals, councils or community groups.
You can read more about the scheme here.
By James Sillars, business and economics reporter 
Another lender exposed to the car finance mis-selling scandal is seeing a sharp drop in its share price today.
Just hours after Lloyds warned investors that it was likely to raise its provisions for covering compensation costs, Close Brothers has followed suit.
The FTSE 250 firm’s shares were trading down more than 7%.
The company, which has already set aside £165m, said that sum was now expected to rise. Car finance makes up approximately a quarter of its total loan book.
Like Lloyds, it did not reveal how much more of a bill it was expecting to face, saying it was still studying the Financial Conduct Authority’s proposals released on Tuesday evening.
The watchdog, which found lenders did not disclose the commission paid to brokers, wants millions of customers to get compensation.
The expected total for payouts came in at the lower end of initial estimates, and will therefore limit the size of the cash piles set aside to cover compensation.
Analysts have said they expect Lloyds to raise its provisions by up to £1.5bn.
It costs an average of £1,298 a week to live in a care home in the UK  – but in some parts of the country, the price is even higher. 
In the South East, residential care will set you back around £1,446 per week – £75,192 a year, according to figures from the country’s leading care reviews site, carehome.co.uk. 
While in the North East, the same care costs £1,112 a week – £57,824 a year. 
People with dementia face even higher prices: £1,343 per week for residential dementia support and £1,564 for nursing dementia care.
Nursing care is more costly still, averaging £1,535 per week nationally, rising to £1,759 in London.
The figures highlight a huge North-South divide in the price of care… 
Almost half of older people in care homes are self-funders, according to Office for National Statistics data.
For those who cannot afford fees, local councils step in, but only after a financial assessment.
In England, you are only eligible for local authority support if you have less than £23,250 in savings and don’t own any property.
There is also no maximum limit on care home costs, with plans to introduce a lifetime cap of £86,000 scrapped by the Labour government last year. 
“We have been waiting decades for meaningful social care reform. The government must act to ease the financial burden on families, many of whom are left with no choice but to sell their homes to cover care fees,” said Sue Learner, editor at carehome.co.uk.
If you fancy a trip to New York and don’t mind its frosty weather in February, Norse Atlantic Airways may be a good bet.
The airline is offering direct £256 return flights to New York which, compared with British Airways’ cheapest price of £440 on similar dates, appears to be a bargain.
Norse’s deal under “economy light” doesn’t include any checked in baggage but it does allow passengers to bring a 10kg cabin bag. 
BA’s “economy basic”, its cheapest option of travel, also only includes a personal item and cabin bag.
Premium
If you’re wanting to treat yourself a little bit, Norse’s “premium classic” deal may be tempting. 
For £748, it offers complimentary drinks, including booze, as well as a personal item, a 15kg cabin bag, a 23kg hold bag, two meals and premium boarding.
By James Sillars, business and economics reporter 
This time yesterday, I brought you news of a rally for bank shares.
That lift was sufficient to propel the FTSE 100 to a fresh record high.
But fast-forward 24 hours and Lloyds has lost Wednesday’s gains, which came off the back of investor relief that the car finance mis-selling scandal bill facing suppliers was at the lower end of estimates.
Lloyds shares were down more than 3% at the open today after the group admitted it may now be facing a “material” increase in its provisions of £1.15bn to date.
It did not put a figure on it, but analysts estimate a further exposure of up to £1.5bn on top of that sum.
Lloyds said it was still crunching the numbers.
The FTSE 100 was down 0.3% at 9,522, with Lloyds among those proving the biggest drag.
The biggest loser was another bank, HSBC.
Its stock was trading more than 5% lower after revealing plans to privatise Hong Kong’s Hang Seng Bank – a subsidiary in which it holds a majority stake.
Hang Seng has been struggling due to its exposure to faltering property markets in the city and in mainland China.
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