Category: News

With a shortage of properties available in certain parts of the UK, we look at whether it could be the ideal time to consider the popular self-build home route and create your own ‘Grand Design’.

Where we are now

The UK housing market is at a crossroads in 2024. With house prices predicted to fall by between -2% and -4% due to broader economic challenges, and pressure on household finances, notably from inflation and higher interest rates impacting housing affordability, the landscape for potential homeowners and investors alike is evolving¹​​.

At the same time, there is a chronic shortage of housing in the UK, and the Competition and Markets Authority has highlighted the need for more, better quality homes and a streamlined planning system to address the scarcity that has been driving up prices​​².

Amid these challenges, the notion of self-building emerges as a compelling alternative. Building your own home is not just a dream for those seeking a ‘Grand Design’ but could increasingly be seen as a practical solution to find a way out of the constraints in the traditional housing market – but why consider this route, and what does it mean for potential self-builders?

The Case for Self-Build in the Current Market

There are a number of benefits that may be had from going down the self-build route – whether it’s creating that personalised dream home or even saving money versus a comparable property on the market.

Self-build projects can also be a way to sidestep the high prices and competition for existing homes, particularly in areas where the housing shortage is most acute. Despite a slight improvement in market confidence and transaction volumes expected in 2024, affordability remains a concern for many, and data from HM Revenue & Customs has shown that housing transactions having fallen 19% year-on-year​​³.

Financing Your Grand Design: Self-Build Mortgages

Financing remains a crucial consideration for anyone looking to embark on a self-build project. Self-build mortgages are designed specifically for this purpose, offering a different funding structure compared to traditional mortgages. Funds are usually released in stages as the build progresses, reducing the lender’s risk and helping manage cash flow throughout the project.

Given the current economic context, with mortgage rates starting to steady following a turbulent past two years, it could be an opportune time to explore self-build mortgage options – you might be surprised at what’s available. The potential for a bespoke home and the chance to potentially save money compared to a traditional home can make for an attractive proposition for those looking to create their dream home in this period of market uncertainty.

Navigating Challenges

However, potential self-builders must be prepared to navigate the wide range of varying challenges that come with the self-build project option – from securing a plot, obtaining planning permission, and managing construction costs as the build progresses. The government and industry are making efforts to address the housing shortage by fixing the planning system and increasing the number of quality homes are steps in the right direction, but they also highlight the complexities involved in bringing new homes to fruition ^[2],[4]​.

Conclusion

In a market characterised by a shortage of properties and shifting economic indicators, building your own home presents a viable alternative to traditional homebuying paths. With thoughtful planning, appropriate financing through self-build mortgages, and a keen eye on the evolving housing landscape, your grand design could be more than a dream—it could be your future home.

Embarking on a self-build project is not without its challenges, but for those willing to navigate the complexities, it offers a unique opportunity to create a personalised living space that meets their needs and preferences, potentially at a lower overall cost. As the UK housing market continues to evolve, self-building stands out as a beacon for those seeking not just a house, but a home they’ve truly made their own.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Sources

1. Lloyds Banking Group (2024) UK housing market review and outlook for 2024. Available at: https://www.lloydsbankinggroup.com/media/press-releases/2023/halifax-2023/uk-housing-market-review-outlook-2024.html [Accessed 20 Mar 2024]
2. Reuters (2024) UK builders and government need to fix housing shortage, regulator says. Available at: https://www.reuters.com/world/uk/uk-antitrust-watchdog-starts-probe-into-homebuilders-2024-02-26/ [Accessed 20 Mar 2024]
3. Mortgage Strategy (2023) HMRC figures show transactions falling 19% year on year. Available at: https://www.mortgagestrategy.co.uk/news/hmrc-figures-show-transactions-falling-19-year-on-year/ [Accessed 22 Mar 2024]
4. House of Commons Library (2023) Tackling the under-supply of housing in England. Available at: https://commonslibrary.parliament.uk/research-briefings/cbp-7671/ [Accessed 20 Mar 2024]

All the information in this article is correct as of the publish date 28^th March 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

A Cambridge University study once found that a person’s financial habits were established by the age of just 7, so we look at some ways that could get kids off to a flying start¹.

Pocket money saving

In days past, it was likely that most children were granted pocket money each week – often cash rewarded in exchange for chores completed, and helped to give kids a good understanding of how money works and how to manage the money they receive from a young age – skills that will hopefully last them throughout life.

Moneyhelper² have put together a range of ways to help educate children of different age groups to the importance of budgeting and saving money – which can be accessed here – https://www.moneyhelper.org.uk/en/family-and-care/talk-money/how-to-talk-to-your-children-about-money

As children get older, moving away from the piggybank, one option to consider could be bank accounts, where a range of savings options exist:

Debit card – a prepaid debit card could provide a means of introducing children to personal finance. As they familiarise themselves with the digital world of banking, being able to show them how to instantly check the balance on their card together with the convenience of being able to top it up easily, will help a parent or carer give a child more confidence in managing their money.

Current account – this option could be used for storing pocket money or earnings from part-time jobs (from the age of 16 upwards), and provide a further means of saving and spending money aside being reliant on cash. It’s important to bear in mind terms and conditions from the bank providing the current account service before setting it up.

Savings account – if there is a considerable amount of funds saved, then there are options around a savings account or ISA, which may hold additional benefits in terms of interest rates or taxation further down the line when children are older. It’s always recommended to seek independent financial advice before making a decision.

Methods like these can all be of valuable assistance in the effort to help children understand the importance of managing money from an early age, and hopefully set them up well for the financial decisions they will make in the future.

Sources

1. The Money Advice Service (2024) Habit Formation and Learning in Young Children by Cambridge University 2013. Available at: https://mascdn.azureedge.net/cms/the-money-advice-service-habit-formation-and-learning-in-young-children-may2013.pdf [Accessed 20 Mar 2024]
2. Moneyhelper (2024) How to teach kids about money. Available at: https://www.moneyhelper.org.uk/en/family-and-care/talk-money/how-to-talk-to-your-children-about-money [Accessed 20 Mar 2024]

All the information in this article is correct as of the publish date 28^th March 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

If you and your family are thinking of needing extra space – the natural thought can be to simply search for a new property. However, with the turbulent housing market and rising cost of mortgages – one answer might be right under your feet.

Adding Value to Your Home

Not only can a home extension offer the much-needed space, but it can add some real value to your home in the process too. A survey by Checkatrade revealed that an extension can add between 5-8% to your property value, depending upon the size, style and design of the extension itself¹.

However, before getting started with the building tools, it’s wise to do a little research on the key considerations to be had when embarking on an extension project.

Planning Permission

Depending on the size and location of your planned extension, you may or may not need planning permission from your local council. There are permitted development rights allowing some single-storey rear extensions to be built without the need for consent. However, it’s important to check the specific measurements and regulations to ensure your extension complies.

Building Regulations

Even if you don’t need planning permission, building regulations approval will still be required. The extension must meet minimum standards for structural integrity, insulation, electrical safety and so on. Using a qualified builder can help ensure regulations are followed.

Inform Your Insurer

Let your home insurance provider know about your extension plans, as this could affect your cover during the works and once completed. Additional rebuild costs may increase your premiums too.

Speak to Your Neighbours

Be considerate and talk through any disruption the works could cause. You may also need neighbours to agree to plans if building on shared walls or boundaries under Party Wall laws. Maintaining good relations is key.

Finding the right Architect & Building Firms

This is arguably the most important decision. Do your research to find an experienced and trustworthy builder or architect. Get recommendations and read reviews. Make sure they have the specific expertise you need.

Get Multiple Quotes

To achieve the best value, get at least three itemised quotes from different builders outlining the full costs. Compare these in detail before selecting who to hire.

Hopefully these tips give you a good overview of key things to consider at the start of your extension journey. It certainly pays to conduct proper planning early on to smooth out and manage the key processes in an effective way – and to turn your place into your dream home, without having to move properties.

Sources

Checkatrade (2024) How much does an extension add to the value of a house?. Available at: https://www.checkatrade.com/blog/expert-advice/extension-add-value-house/ [Accessed 26 Feb 2024]

All the information in this article is correct as of the publish date 29^th February 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Recent times have seen a dramatic rise in interest rates, and we’ve all seen the impact on monthly mortgage payments as a result, but what’s less publicised is how your savings could now be working harder for you. We take a look at some tips on how to make the most of higher interest rates.

A feature by MoneyHelper, a consumer-facing support service from the UK Government, highlights some key points that we can take some inspiration from.

Switching Accounts

With interest rates having shot up over the past two years, top rates are now ten times higher than they were, however according to Moneyhelper¹, you may need to move your savings around to access the highest rates.  

According to the Financial Conduct Authority, in December 2023 the average interest rate for instant access savings was 1.99%, and 3.52% for fixed rate accounts². While this is higher than the same numbers earlier this year, there are quite a few accounts paying 5% or more in interest for both fixed and instant access accounts¹.

Rising interest rates might mean that you’re spending more on your mortgage or other borrowing, but it can also earn you a bit extra on your savings. This is why it’s important to look around to ensure that your money is saved in the right places to benefit from increased interest rates.

Moneyhelper have put together some further tips on how to boost your interest rate:

1. Check that you’re using the right type of account. If you’re eligible, some savers may be able to earn up to a 50% bonus with a Help to Save account or 25% with a Lifetime ISA
2. Check what your savings currently pay. You can usually find the rate and if there are any restrictions or penalties for withdrawing cash:
   1. via online and mobile banking
   2. checking statements
3. Compare against the top paying accounts – have a look around online for comparisons on financial services consumer websites, or speak to an independent financial adviser.
4. Choose a new account to open. These days, most of the accounts paying competitive rates can all be opened online, and the process may only take a few hours to do. Moneyhelper have also put together some guidance – Get help before choosing an account
5. Move your money. Use your new account details to transfer or pay in money. 

If you have a fixed-rate savings account or bond, you’ll usually have to wait until it matures (ends) before you can do this¹. Other types of account should let you move money more freely, but always double check before starting.

Be prepared to move your money again

It’s a wise idea to check rates on a regular basis, as banks compete against one another to be the best, or have the most stand-out savings rates – be prepared that another bank may offer a more attractive rate in due course, and you may wish to move your funds accordingly.

Your bank might not increase your rate automatically 

Be prepared that even if your bank is offering a competitive rate to new customers, they may not offer the same to you automatically. It’s worth keeping an eye on the market and if you see a better deal, query with your own bank as to how you can take advantage of what’s being offered.

Will you pay tax on savings interest? 

There’s a set amount that people can earn in savings interest each tax year (6 April to 5 April) without paying tax, based on your annual income. Moneyhelper have put together a guide that covers how tax savings and investments can work – https://www.moneyhelper.org.uk/en/savings/types-of-savings/tax-on-savings-and-investments

Types of savings account

When it comes to finding accounts with the higher savings rates, there are different types available, with their own pros and cons –

• Instant and easy access accounts – these can be a good idea if you’re getting started with savings and might need to dip into them.
• Easy-access cash ISA – all interest is tax-free, you can save up to £20,000 before 6 April¹.
• Premium Bonds – no interest, instead you’re entered into a monthly prize draw¹.

Work around restrictions to maximise the return

Moneyhelper have put together a range of useful links for different types of savings and how to maximise these across the different types of accounts available:

• Lifetime ISA – offer a 25% bonus on savings used for retirement or buying a first home, you need to be aged 18 to 39 to open one.
• Help to Save – if you claim certain benefits you can save up to £50 a month for four years and earn a 50% government bonus. 
• Regular savings – let you save a set monthly amount in return for a higher interest rate, but you might not be able to withdraw money.  
• Fixed rate savings bonds – guarantee an interest rate for a set period between six months and seven years, but you can’t withdraw your money until the end.
• Fixed rate cash ISA – a guaranteed interest rate between one and five years, interest is tax-free and you can usually withdraw for a fee
• Notice accounts – to take out money you’ll usually need to give between 30 and 120 days’ notice.

In summary, this period of increased interest rates offers an opportunity for those with savings to consider how they may get more from their investments. The tips and methods shared here are all from the UK Government Moneyhelper website, which is packed full of advice and suggestions on how to keep safe financially. We hope that this is a useful feature and would always encourage you to seek professional advice from an Independent Financial Adviser before making any changes to your finances.

Sources

1. Moneyhelper (2024) Are you getting the best rate for your savings?. Available at: https://www.moneyhelper.org.uk/en/blog/savings/how-to-find-the-top-savings-accounts [Accessed 26 Feb 2024]
2. Financial Conduct Authority (2024). FCA update on cash savings – December. Available at: https://www.fca.org.uk/data/fca-update-cash-savings-december-2023 [Accessed 26 Feb 2024]

All the information in this article is correct as of the publish date 29^th February 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

According to recent figures from the Office of National Statistics (ONS), the UK fell into a recession for the final three months of 2023. Here, we look further into this to find out what it can mean for the average person with a mortgage¹.

What is a recession?

The Office for National Statistics (ONS) publishes figures for the UK’s Gross Domestic Product (GDP) – which is the value of all the goods and services produced by the UK for a given time period.

The GDP figure would typically rise and fall over time, as incomes rise or the economy shrinks, for example. ONS data for 2023¹ has shown that the GDP figure has fallen during the last two quarters of 2023, which is officially classified as a recession.

Understanding the Impact on Mortgages

The economic landscape has shifted, leading to potential changes in mortgage rates, housing values, and the broader property market. The Bank of England’s measures to combat inflation have resulted in interest rates increasing to 5.25%, impacting many homeowners with variable or tracker mortgages². However, there might be a silver lining as hints of future rate cuts could potentially alleviate some pressure for those looking to remortgage or secure new mortgage deals.

What This Could Mean for You

• For Prospective Homebuyers: The current situation presents a mixed bag. While higher interest rates may seem daunting, the potential for rate cuts and a decrease in housing prices could create unique opportunities. It’s crucial to assess your long-term affordability and consider locking in rates if you find a suitable deal.
• For Existing Homeowners: If your mortgage deal is nearing its end, or you’re on a variable rate, now is the time to review your options. Chances are that rates have increased since your preview mortgage deal, however they are currently below the highs seen in late 2022. Fixed-rate mortgages may offer stability on monthly payments, although tracker mortgages can offer the chance to see immediate reductions in monthly payments should Bank of England Interest Rates fall as 2024 progresses. 
• For Those Looking to Remortgage: Aside from homeowners remortgaging when their existing deals come to an end, there may be other reasons to remortgage, whether to access equity in a property or release funds to pay off existing debts for example, however with an uncertain market, some may wish to wait longer for greater clarity on what’s proving a challenging and uncertain market to date.

Strategies to Consider

• Review Your Financial Health: Take a comprehensive look at your finances, considering your income, debts, and emergency savings. Understanding your financial position is critical to making informed decisions.
• Stay Informed: Keep up-to-date with the latest economic news and mortgage rates. Awareness of market trends can guide your decisions and timing when considering remortgaging or purchasing.
• Seek Professional Mortgage Advice: Our role is to support you through these uncertain times. Whether you’re contemplating a new mortgage, looking to remortgage, or simply seeking reassurance about your current situation, we are here to offer expert advice tailored to your individual needs.
• Consider Additional Support: If you’re experiencing financial difficulties, several resources are available. Engaging with organizations like Citizens Advice can provide guidance on managing debt and financial planning.
• Stay Protected: In these unpredictable times, it’s worthwhile protecting the things that matter to you, and how long you and your family can maintain your standard of living should the worst happen – whether it’s a loss of income, a critical illness or worse – having protection in place can give valuable peace of mind when you need it most. Speak to us to find out more about how we can assist. 

Final Thoughts

While the economic forecast may seem daunting, opportunities exist for informed and strategic decision-making. Our commitment to you, our valued client, is unwavering. We are dedicated to providing you with the support and advice needed to navigate these challenging times confidently.

Together, we will explore all avenues to ensure your mortgage and protection arrangements are as resilient and beneficial as possible. Please don’t hesitate to reach out for a consultation or with any concerns you might have.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Sources

1. Office for National Statistics (2024) OGDP first quarterly estimate, UK: October to December 2023. Available at: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/octobertodecember2023 [Accessed 26 Feb 2024]

• Bank of England (2024) Interest rates and Bank Rate. Available at: https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate [Accessed 26 Feb 2024]

All the information in this article is correct as of the publish date 29^th February 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

With days getting longer, and a certain something in the air – Springtime has been proven to be the best time to sell a home. We look at a few quick tips on how to seize the moment and get your home ready for sale.

Why is Spring so popular?

According to research from property advice experts The Advisory¹, and reports from a number of other estate agents, Spring is the most popular time for selling properties, from mid-February through to late June being the peak, and representing a great opportunity to get your home on the market if you’re looking to make a move this year.

Top Tips to Get on the Market

We’ve assembled a few useful and budget tips that you may find helpful to get the most from your property sale, both to maximise value and increase the chances of a quick sale this Spring:

1. Deep Clean and Declutter: A sparkling clean home not only looks appealing but also signals to buyers that the property is well-maintained. A declutter is recommended to help buyers envisage what the property would be like if they lived there – however, there is a fine line between having a clear out and leaving the property like a generic hotel, so leave some personality there if you can.
2. Garden Grooming: Enhance your home’s curb appeal with a well-manicured garden. First impressions are crucial, and a blooming garden can be a deciding factor for potential buyers – be sure to clear pathways and ensure fences & gates are in good condition too.
3. Perform Repairs: Addressing minor fixes before listing can significantly impact the perceived value of your home, making it more enticing to buyers and something that they can move into straight away.
4. Cleanliness Comes First: Clean everything until it sparkles. Get rid of limescale, clean and repair tile grout, wax wooden floors, get rid of odours, hang up fresh towels. This will make the place more appealing and allow viewers to imagine living there.
5. Interior Refresh: Consider a fresh coat of paint in neutral tones to brighten interiors and appeal to a wider audience.
6. Smell is Important: It almost goes without saying but a bad smell at your property is likely to be a big turn-off for prospective buyers – don’t just mask the smell but find the source and eradicate it. It’s also worthwhile clearing drains, emptying and washing bins, and opening windows to allow a good airflow to remove old cooking smells too. One tip to remove any stale cigarette smells is to leave bowls of vinegar around the property for a few days to neutralise the atmosphere.
7. Light it Up: Ensure your home is well-lit, and if feasible, scheduling viewings that take place during the hours of daylight will help showcase your home in the best possible way, creating a warm, inviting atmosphere.
8. Maximise Kerb Appeal: First impressions count – research from YouGov has demonstrated that prospective buyers say well-maintained windows and a roof appearing in good condition, were the most important external features when viewing a property².

All these tips can help you get the most from your property when it comes to sell. By making it as easy as possible for prospective buyers to fall in love with your home and to see themselves living there, the easier it is to get a quick sale, and potentially even increase the final sales value that your property goes for.

Dedicated advice for your circumstances

Don’t forget that we’re here to help you on your journey. Our dedicated team can provide the seasoned professional mortgage & protection advice you need to help make the transition to your new home even easier. Just get in touch with us to find out more and we’ll be there for you every step of the way.

Sources

1. The Advisory (2024) When is the Best Time to Sell Your House?. Available at: https://www.theadvisory.co.uk/house-selling/best-time-to-sell-house/ [Accessed 27 Feb 2024]
2. HomeOwners Alliance (2024) 12 Tips for selling your home. Available at: https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/top-tips-how-to-make-your-home-more-saleable-and-valuable/ [Accessed 27 Feb 2024]

Homeowners may finally have reason to breathe easier in 2024. Over 50 mortgage lenders slashed rates at the start of the year¹, sparking optimism for those with mortgages expiring this year. Two-year fixed rates now average just 5.62%, down from 5.93% previously. But the biggest news is sub-4% rates available to homeowners with substantial equity in their properties¹. 

We understand many mortgages are set to expire in 2024. We want to provide information to help you secure the right deal given your situation. We’re here to assist you through each step of the process. We’ve put together a brief guide on getting “mortgage ready” to streamline the remortgaging process as much as possible. 

Why might I need a remortgage? 

One of the most common reasons for a remortgage is that the term granted on an initial mortgage deal is coming to an end. Most mortgages are granted on an initial two-year or five-year period, and once this expires, many lenders will put you onto their default Standard Variable Rate (SVR) which can mean that you end up paying more than you need to, as the interest rate is sometimes higher than can be sought elsewhere.  

For this reason, we’d advise that you get in touch with us, firstly, if you are in any doubt as to when your initial mortgage term expires, and secondly, for us to help you find a rate that may be more suitable for your own individual circumstances.  

This can involve either a full remortgage, finding a new product with a new lender, or we can help arrange a product transfer, which is where we can put you onto the most suitable mortgage product with your existing lender. Either way, we’d recommend that you come to us for bespoke, professional advice on the most appropriate deal that fits your exact circumstances, especially as there’s so much at stake.  

There are several things you can do to prepare for remortgaging in 2024: 

How to Get Remortgage Ready 

We recommend taking the following steps to help smooth the remortgage process: 

• Plan Ahead – Contact us around 6 months before your current mortgage expires. This gives enough time to help find the most suitable new deal. We’ll remain in touch throughout to update you on next steps. 

• Organise Finances – As when you first sought a mortgage, having tidy finances can help to boost the odds of acceptance. Check your credit score. Avoid new loans or credit cards. Major purchases can also hurt. Payday loans and overdrafts are especially damaging. Knowing your property’s estimated market value helps too – browse similar listings. 
• Gather Documents – Like the initial mortgage, you’ll need paperwork to verify identity, address and income. Save time by having these ready. Include your last 3 bank statements and pay stubs, proof of bonuses, latest tax form P60, ID such as passport, and proof of address, such as utility bills for example. 
• Self-Employed – Provide 3 years of income history. Showing future workload and revenue helps to aid your application. 

This should help to give you a good headstart on having the key documents and info you need ahead of a remortgage. We’re here to support you every step of the way, so if there’s any queries you have, just ask us and we’ll be happy to help. 

It’s not always easy to know what’s right for you and your circumstances, so that’s where the value of professional mortgage advice comes in. We’re here to listen to your exact situation and to recommend the products that we believe are the most appropriate for you based upon looking at a wide range of lenders and exclusive deals that aren’t available on the high street.  

If your mortgage deal expires this year, your lender will likely contact you about transferring to a new product. However, we recommend seeking our experienced, professional advice before accepting any offers. We want to help you find the option that serves your interests, not just the lender’s. We’re more than happy to arrange both product transfers and remortgages, but pride ourselves in listening to your exact situation before giving bespoke advice that’s tailored to you. 

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Sources

1. This is Money (2024) Four more major banks cut mortgage rates – when will two-year fixes go below 4%?. Available at: https://www.thisismoney.co.uk/money/mortgageshome/article-12969351/Four-banks-cut-mortgage-rates-two-year-fixes-4.html (Accessed 18th Jan 2024)

All the information in this article is correct as of the publish date 25^th January 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

With growing frustration surrounding NHS waiting lists and difficulties accessing care, more individuals are considering private healthcare. In this article, we explore the merits of private health insurance and whether it may be a viable option for you.

The Rising Trend of Private Healthcare

Recent data from the Private Healthcare Information Network (PHIN) shows 272,000 people in the UK opted to self-fund medical procedures or diagnostics at private hospitals last year – a significant 33% increase compared to pre-pandemic figures¹. Over double that number relied on private medical insurance policies to cover expenses¹. While private health insurance can provide quicker access to care, it’s essential to weigh the costs against the benefits and understand policy limitations and exclusions.

Understanding Private Medical Insurance

Private medical insurance generally offers swift access to healthcare services like assessments, diagnoses, treatments, and aftercare. You often can select your preferred specialist and private hospital location. Many providers now extend support for mental health issues in addition to physical health.

Coverage Details: What to Expect from Private Health Insurance

Coverage varies between providers and plans, but often includes:

• Consultations with specialist doctors
• Inpatient treatment like surgeries
• Outpatient services such as scans, tests, x-rays
• Limited physiotherapy sessions
• 24/7 medical helplines and virtual GP appointments

However, typical exclusions may include:

• Emergency treatment, which should be sought from your GP or emergency services.
• Maternity care, which typically isn’t covered.
• Chronic conditions like arthritis or diabetes treatment.

Beyond Private Health Insurance: Exploring Other Financial Safety Nets

Private health insurance isn’t the only policy that can provide financial support during health challenges. Critical illness insurance pays out a lump sum upon diagnosis of covered conditions, while life insurance provides a lump sum in the event of your passing during the policy term. Alternatively, income protection offers monthly benefits if illness or injury prevents you from working.

Making the Choice: Is Private Health Insurance Right for You?

The decision to invest in private health insurance hinges on your individual circumstances and preferences. If you’re concerned about long NHS waiting lists, then private health insurance may be able to provide greater peace of mind, however, if you have confidence in the NHS’s availability when needed, then this may be less of a priority for you.

Strategies for Self-Employed Individuals

For self-employed individuals, private health insurance can be crucial to ensure that health issues or accidents don’t disrupt your income. If you prefer to have the option to use private care but don’t want to purchase insurance, it may be worthwhile setting aside savings to cover potential medical expenses, should the worst happen. However, be mindful that medical treatments can be costly, and savings may not always suffice.

Private Health Insurance: A Personal Decision

The decision to invest in private health insurance is a personal one, dependent on your own circumstances and priorities. It’s important to weigh up the pros and cons carefully and explore the available options to make an informed choice that suits your needs.

Finding the Right Fit for Your Healthcare Needs

We can help you assess the range of insurance and protection products available and can help you source the most appropriate product to suit your needs, goals, and budget.

Sources

1. The Times (2023) Is private health insurance worth it? Available at: https://www.thetimes.co.uk/money-mentor/insurance/life-protection-insurance/private-healthcare (Accessed 18 Jan 2024)

All the information in this article is correct as of the publish date 25^th January 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Moving home is a significant life event, and ensuring a smooth transition requires attention to detail and meticulous planning. If you’re thinking of moving, we’ve compiled an extensive checklist to assist during the moving process.

1. Career-Related Notifications 

• Employer: Inform them for updated payroll and contact details. 
• HM Revenue & Customs (HMRC): Essential for tax-related updates. Visit gov.uk for instructions. 
• National Insurance: Update your NI information using your NI number. Check online for contact details. 

2. Local Authorities and Governmental Entities 

• Council Tax: Update your address via the relevant gov.uk site. 
• Electoral Roll: Re-register at your new area through https://www.gov.uk/register-to-vote. 
• Department for Work and Pensions: Notify them if you’re receiving government funds. 

3. Recreational Considerations 

• Local Subscriptions: Cancel memberships to local gyms or clubs. 
• Postal Subscriptions: Update them with your new address. 

4. Household Utilities and Services 

• TV and Broadband: Notify them of your move for billing and service adjustments. 
• Telephone: Update both landline and mobile providers. 
• TV Licence: Update your licence at the TV Licensing website. 
• DVLA Driving Licence: Update your driving licence address online. 
• Vehicle Breakdown Cover: Update your details with your provider.
• Vehicle Insurance: Advise of your new address, be prepared for potential cost changes, insurance is graded based on risk rating at your new property.
• V5C Vehicle Log Book: Update the address on your V5C at the Government website.

5. Educational Institutions 

• Schools: Notify them if you have children for contact information updates. 
• Universities: Inform them of your move for record updates. 

6. Insurance Policies 

• General Insurance: Update address details for various policies like health, home, life, travel, and pet insurance. 

7. Services Providers 

• Maintenance Services: Cancel or update addresses for gardeners, window cleaners, etc. 

8. Financial Institutions 

• Banks and Building Societies: Update your residence address. 
• Premium Bonds: Ensure your address is current for receiving any winnings. 
• Pensions: Contact your pension provider with the new address. 
• Loan and Credit Card Companies: Notify them of your change of address. 

9. Utilities 

• Electricity and Gas: Notify providers and take meter readings on moving day. 
• Water: Inform your provider about your moving date. 

10. Settling Into Your New Home 

• Postal Redirect: Set up a redirect with Royal Mail for any mail to your old address. 

We hope that this comprehensive checklist can help to make the moving process as smooth and as stress-free as possible, and by updating your address with all relevant parties as soon as you can, should help to minimise future complications or delays in services as you move into your new home.

All the information in this article is correct as of the publish date 25^th January 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

2024 promises to be an eventful year for hands-on landlords, with several significant developments on the horizon. The potential progression of the Renters (Reform) Bill through Parliament, a crucial budget release in March, and the likelihood of a General Election are all events that could reshape the landscape of property management significantly¹. 

As the Government continue to reform the private rented sector, it’s essential for landlords to stay informed about potential policy shifts, especially if there is a change in Government later this year. Understanding these changes and preparing accordingly will be crucial for effective property management and investment decisions. 

Mortgage Rates: An Opportunity for Landlords 

The forecasted decline in inflation² and the base rate suggests a positive outlook for landlords. With Capital Economics projecting a base rate decrease to 4.75% in 2025, landlords looking to remortgage may find more favourable rates. This environment could also encourage new investments in the property sector¹. 

Tax Changes: Implications for Landlords 

April brings changes that could affect landlords financially. The elimination of Class 2 National Insurance and the reduction of Class 4 contributions are beneficial, but the freeze on Income Tax bands and the Personal Allowance means landlords with increased rents may face higher taxes on their income¹. 

Additionally, the halving of the tax-free allowance for Capital Gains in April will impact landlords contemplating property sales, although it’s unlikely to significantly affect long-term profits¹. 

Property Sales: A Mixed Outlook 

The property market in 2024 may initially favour buyers, but a traditional uptick is expected in the spring. However, the Chancellor’s Spring Budget and the prospect of a General Election could introduce uncertainty, affecting market confidence and transaction volumes¹. 

Rental Market Trends: A Steady Growth 

The rental market looks promising, with predictions of sustained rent growth, albeit at a slightly moderated pace. With average UK rents expected to grow by 5%-6% in 2024³ and a cumulative growth of around 20% over the next five years, landlords stand to benefit from a robust rental profit potential, especially if inflation stabilises around 2%.¹ 

The Future of Lettings: Key Legislative Changes 

The Renters (Reform) Bill and Labour’s Renters’ Charter are set to bring significant changes. Both proposals advocate for the abolition of Section 21, but the complete abolition by 2024 remains uncertain, especially with the Government’s reluctance to proceed until court reforms are in place¹. Landlords may wish to closely monitor these developments to adjust their strategies accordingly. 

Compliance with Material Information Requirements 

The definitive change for 2024 concerns the ‘material information’ required in property listings. Ensure compliance with Parts A, B, and C of the guidance, which include details like price/rent, council tax, property type, and other pertinent issues. Whether you use an agent or market your property independently, adhering to the guidelines of the National Trading Standards Estate and Letting Agency Team is essential for accurate and compliant listings. 

2024 is set to be a year of significant changes and opportunities for landlords. Staying informed and adaptable will be key to navigating the evolving landscape of property management and investment. By understanding and responding to these developments, landlords can position themselves to make the most of the opportunities and challenges ahead. 

Sources

1. Landlord Zone (2024) What is in store for landlords in 2024?. Available at: https://www.landlordzone.co.uk/news/what-is-in-store-for-landlords-in-2024 (Accessed 18 Jan 2024)

• Reuters (2024) Explainer: What is the outlook for UK inflation in 2024?. Available at: https://www.reuters.com/markets/europe/what-is-outlook-uk-inflation-2024-2024-01-17/ (Accessed 18 Jan 2024)

• Savills (2024) UK rents to keep on rising but will hit ‘affordability ceiling’ in 2025. Available at: https://www.savills.co.uk/insight-and-opinion/savills-news/354578-0/uk-rents-to-keep-on-rising-but-will-hit–affordability-ceiling–in-2025 (Accessed 18 Jan 2024)

All the information in this article is correct as of the publish date 25^th January 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.