Pensioner incomes up since recession

Enable’s IFAs in Bishops Stortford are always ready to help people plan for retirement and it may come as a surprise to hear that retired people are 7.7% better off than in 2008 while workers' wages lag behind according to official figures.

The Government’s ‘triple lock’ – which guarantees state pensions will rise by at least 2.5 per cent every year – has been a factor behind the growth in retirement incomes, the Office for National Statistics said, meaning that most pensioners did not experience a drop in income during the recession, when workers were hit by rising unemployment and wage falls.

Increasing numbers of people investing in private pensions or annuities has also contributed to the rise in pensioner living standards. Retired people had an average income of £21,000 in 2014/15 – meaning they were £1,500 a year or 7.7 per cent better off than they were in 2007/08, adjusting for inflation. Pensioners have seen their incomes nearly triple since records began in 1977, even once inflation was taken into account, while workers’ incomes have only doubled.

Pensioners are much less likely to rely on the state pension than in previous decades. Retired households have also grown increasingly reliant on private pensions, with them making up 43 per cent of incomes in 2014/15 compared to 18 per cent in 1977.

The Pensions Minister said the Government was ‘committed to helping people enjoy a financially secure retirement’ adding, ‘Supporting people after they have worked hard all of their lives will continue to be a priority, especially as it can difficult for people to increase their incomes in retirement.’ Enable’s IFAs feel the same.

Source: This is Money


Issued by: Enable Independent Financial Life Planners • 
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Where are we with ISAs? The deadline is approaching...

Traditionally, this is the time of year when Enable’s IFAs are busy making sure everyone has used their ISA allowance. It is normally a time when ISA providers boost their offerings to encourage savers to invest in ISAs before the start of the new tax year. This year however, rather than raising rates, providers have been cutting them; some savers are facing some of the worst cash ISA deals on record. Since the Budget, George Osbourne has announced that there will be a new ISA available from next year for savers under the age of 40, for more information please contact one of our team.

Charlotte Nelson, finance expert at Moneyfacts says, "ISAs were once the go-to product for savers as they offered not only tax benefits but also some of the better rates." "However, this is certainly no longer the case thanks to almost constant rate decreases."

One factor that’s been taking its toll on ISA rates is the personal savings allowance (PSA). The PSA, which is due to come into place in April, seems to have only added to the downward slide in ISA rates: soon £1,000 of interest earned will be tax-free, which means that the importance of getting an ISA each tax year has been reduced. But as ever diversification is important. "Relying on the PSA alone for your tax-free pot is a gamble – eventually rates will go up, and the amount savers can save tax-free will subsequently diminish." For this reason ISAs shouldn't be overlooked, particularly if you have larger amounts to save. In addition, ISAs can be passed on to spouses after death, which is worth contemplating when weighing up your long-term interests." Says Charlotte.

There's no guarantee how long the PSA will last, if the allowance is withdrawn in future years, your savings interest will be taxable again, whereas any money built up in an ISA will remain tax-free for life. So it’s probably still worth using up your ISA allowance and Enables IFAs in Bishops Stortford can help you find the best deals.

Source: Money facts


Issued by: Enable Independent Financial Life Planners • 
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Cost of housing in UK means more young people still living with their parents

Enables’ IFAs in Bishops Stortford have been seeing that more and more young people are returning to live with their parents and recent research only confirms that affordability issues mean that more young adults aged 20 to 34 in the are more likely to be sharing a home with their parents than any time since 1996.

In 2015 there were 618,000 more young adults living with their parents than in 1996 - 3.3 million rather than 2.7 million, according to the data from the Office of National Statistics (ONS). Their research indicates that the percentage of young adult householders owning their home decreased from 55% in 1996 to 30% in 2015 for 25 to 29 year olds and from 68% to 46% for 30 to 34 year olds.
Only 9% of 20 to 24 year old householders owned their homes either outright or with a mortgage or loan in 2015, down from 30% in 1996.

Between 1971 and 1999, the amount paid for a house by first time buyers with a mortgage fluctuated between two and three times their annual income. After 2000, this ratio increased rapidly, reaching a peak of more than 4.5 times their annual income in 2004 and has remained fairly stable since then. But in 2014 median house prices were 11 times median gross annual pay for 22 to 29 year olds, while median house prices for first time buyers were nine times median gross annual pay for 22 to 29 year olds. 

House prices may have risen but increases in earnings have not, it’s challenging times for you young people. Enable’s experienced IFAs in Bishops Stortford can help you to help them.

Source: Property Wire

Issued by: Enable Independent Financial Life Planners • 
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Budget: Small businesses and the Budget

Bishop Stortford based IFA’s at Enable can see that George Osborne’s most recent Budget speech has put small businesses at the centre for a change, this time small businesses  are the clear winners with big businesses picking up the bill.

One of the most challenging things for small businesses are business rates, which far exceed the amount they pay in corporation tax. To ease this burden Mr Osborne announced that 630,000 small businesses will pay no business rates at all from next year. He claims that this reduction will save £7bn per year for small businesses.

Commercial property investors will have to pay 0% for properties worth up to £150,000, 2% on the next £100,000 and 5% on properties above £250,000, in a move to help smaller firms.

Big firms face however will face a crackdown on practices which reduce taxable profits, including offsetting debt interest against profits and using losses in one year to offset profits in another.
The government says this combination of measures will raise £9bn.

Both big and small businesses will be grateful that he didn't raise fuel duty. The "feel good factor" that creates is at least as important as the threat of a Tory backbench riot. The overall picture for the economy may not be as many had hoped but there have been moves to help freelances and smaller businesses move forward.  Enable’s IFAs in Bishops Stortford can help you with your financial planning.

Source: BBC


Issued by: Enable Independent Financial Life Planners • 
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Budget: Savers benefits

Enable’s IFAs in Bishop’s Stortford can see no downside to the new annual ISA limit being raised from £15,240 to £20,000 with a new “lifetime” ISA to help the under 40’s save by the government giving them £1 for every £4 saved and people who save a maximum of £4,000 towards a home deposit or retirement will get a £1,000 top-up from the state every year until they turn 50.

These also sit interestingly alongside the new personal savings allowance (PSA), available from April 6 which allows savers to earn £1,000 interest (for basic-rate taxpayers) or £500 (higher-rate) tax-free per year.  Under the PSA, returns on non-Isa savings within the tax-free limit look to be greater than the returns offered by ISAs, because rates paid are generally higher.

But is the Lifetime Isa just another version of the Help to Buy Isa it looks pretty much as though it is but it’s a slightly better version.  The contribution limit of £4,000 is higher than Help to Buy and it can be invested in shares as well as cash and here is no restrictive maximum bonus figure (£3,000 for the Help to Buy Isa). A bonus will be paid on contributions made up to the age of 50, although there will be a consultation for bonuses on contributions beyond that age.

If you have already opened a Help to Buy ISA you will be able to transfer the balance to a Lifetime ISA, according to the Treasury, you will receive the 25pc bonus on the full balance. As a vehicle to save for a first property, this looks like quite a good option.

Source: The Telegraph


Issued by: Enable Independent Financial Life Planners • 
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Budget: Tax situation

After George Osborne’s most recent budget the tax situation for individuals looks slightly improved with the threshold for 40% income tax payers to rise from £42,385 to £45,000 in April 2017. And the Tax-free personal allowance, to rise from £11,000 in April 2016 to £11,500 in April 2017. Even Capital Gains Tax is to be cut from 28% to 20% and from 18% to 10% for basic-rate taxpayers.

But the proposed hike in Insurance Premium Tax is proving controversial.  The insurance premium tax will rise from 9.5% to 10% and Chancellor George Osborne has been mulling plans to raise the Insurance Premium Tax from 9.5% to 12.5%. Many say this will simply penalise customers for insuring their valuables.

The Association of British Insurers has estimated the tax — levied every time someone buys an insurance policy in the UK — will add £13 to car insurance policies and £10 to building and contents insurance on average. Liverpool Victoria boss Mike Rogers said customers would bear the brunt of any increase and urged the Treasury not to raise the tax, which was hiked from 6% to 9.5% in November. “It will increase the financial burden for millions of responsible households,” Rogers said. “It is not a tax on insurance companies — it’s a tax on insurance products which is paid directly by customers, effectively penalising them for doing the right thing and protecting the things they value most.”

Enable’s experienced IFAs in Bishop’s Stortford can help you work out the best way to make sure your work and property are protected and help you plan cover for you family should anything happen to you.

Source: BBC/Standard

Issued by: Enable Independent Financial Life Planners • 
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Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
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Retiring with a buy-to-let

Helping people plan for retirement Enables’ experienced IFA’s have seen more and more retirees looking to invest their tax free pension cash lump sum into the buy-to-let property.  Despite the looming tax clampdown, this market has stayed fair constant according to data from Fidelity International.
 


From the 6th of April 2016, any buy-to-let investor will have to pay an extra 3% stamp duty surcharge more than other residential buyers. Higher-rate tax relief on mortgage interest is due to reduce from April 2017 to the basic 20% rate and landlords overall will have to claim less for wear and tear on their properties. Despite these impending changes retirees’ continue to look to bricks and mortar with 7% of Fidelity’s retirement customers using their tax free cash lump sum to invest in a rental property this January. In the latest budget Osborne also announced further Stamp Duty increases to large property investors, those with 15 properties or more. 


Investment director for personal Investing at Fidelity International, Maike Currie said: “for many retirees, buy-to-let is seen as a ‘no brainer’ investment given the spectacular rise in property markets, particularly in London, over recent years. But tax changes aside, the illiquidity of the housing market as well as costs in the way of maintenance, stamp duty, mortgage arrangement fees and a host of unpredictable outgoings can chip away at income. Not to mention the time and effort required to manage a property and the risk that it may lie empty between tenancies.”… “Buy-to-let in retirement may work for some but with the added extras that come with it, it’s worth asking yourself, whether you really want to be managing a property in your eighties?” Enable’s IFAs in Bishops Stortford can help talk through your retirement options.

Source: Landlord Today

Issued by: Enable Independent Financial Life Planners • 
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Million pound properties on the up?

New research shows that the number of million pound properties in the UK will more than triple by 2030 and one in four London homes will cost £1 million or more according to a study by Santander Mortgages.

By 2030 The report suggests that the average property price in the UK could double, surpassing the half a million pound mark. Currently less than half a million homes in the UK are valued at £1 million or more, says the research done in partnership with economist and London School of Economics professor of economic geography Paul Cheshire. Overall, the average UK property price, which currently stands at £283,565 is expected to increase 23% by 2020 to £349,3000. Fifteen years from now in 2030, the average UK property price will have almost doubled with a 97% increase, surpassing the half a million pound mark at £557,444.

At present in the UK, the average property price is 7.9 times the average income, but by 2030, this is expected to hit 9.7. Again, this trend is elevated in London, where prices are currently 11.5 times incomes and predicted to rise to a staggering 16.5 by 2030. Property price inflation is beneficial for existing owners who will see their net-wealth increase, but entering the market becomes harder for new buyers, further highlighting the importance of the right timing and financial planning.

Source: Property Wire

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
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Windfall for 95% of struggling savers coming into effect soon

Enable’s IFA’s in Bishop’s Stortford want to remind you that last year the Chancellor abolished tax on first £1k of savings income and the new benefits are coming into effect this April. This essentially means 'tax free saving' for 95 per cent of the population.  No one but the rich will pay tax on their savings as the 20p basic rate on savings will soon be abolished.

The move will mean that 95 per cent of savers will pay no tax on their savings whatsoever. However it is likely to help those with large savings deposits considerably more than those with more modest savings as no tax is payable on interest earned on the first £15,000 saved already when the cash is put into an Isa. It could render cash ISAs effectively redundant for all but the wealthiest as from now on most savings deposits will already be sheltered from tax.  George Osborne said savers have paid tax already on the money when it was earned – they shouldn't have to pay it again.

Savers have lost as much as £130 billion or £5,000 per household since rates were cut, according to estimates from Hargreaves Lansdown.  Financial services firm Hargreaves Lansdown analysed Bank of England data, comparing actual interest paid on cash deposits with what those payments would have been if interest rates had remained at 2008 levels. Kevin Mountford, head of banking at MoneySuperMarket, said: 'The measures announced should be applauded and it’s great to see that the Government is incentivising the nation to put more money away, especially in the current low interest rate environment where savers have been hit particularly hard.'

Source: This is Money

Issued by: Enable Independent Financial Life Planners • 
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Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
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Improvement in household spending power

The latest figures released from the Office for National Statistics (ONS) reveal that the typical level of spending power, or disposable income, for the average UK household in 2014-15 was £25,700. This figure is £1,500 higher than the low point seen in 2012-13. This marks a milestone from the hit taken by disposable income levels seen during the financial crisis.

This good news was compounded for pensioners who have been in receipt of the state pension, as the triple lock promise from the Government, whereby the state pension is guaranteed to rise each April by the highest of inflation, average earnings, or 2.5%, has seen the average pensioners household income rise by 7.7% or £1,500 between 2007-8 (the start of the financial crisis) and 2014-15.

However, by comparison, those people in employment have not been quite as lucky as they have seen their household disposable income rise by only 3.1%, or £900, over the same period.

Commenting on these statistics, the Chief Economist of the think tank, Resolution Foundation, was reported to have said: “Strong jobs growth and ultra-low inflation have finally pushed living standards back above where they were before the financial crisis. But the downturn has been felt very differently between generations, and across the UK.

“This generational divide opened up well before the financial crisis landed. As a result, typical working age families are no better off today than they were a decade ago, while typical pensioner incomes are 15% higher.

“This divide is unlikely to widen in the coming years, but nor do we see any sign of narrowing. By 2020, pensioner incomes are set to be over a third higher than they were at the turn of the century – more than double the increase experienced by working-age households.”

Issued by: Enable Independent Financial Life Planners • 
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Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
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UK's Q4 2015 economic growth confirmed at 0.5%

Fourth quarter economic growth in the UK was confirmed in February as being 0.5%, helped by steady growth in the services sector, which grew by 0.7% during the period. However, the important production sector (which includes heavy industry and manufacturing) saw a contraction of 0.5%. This contraction together with a decline in overall net trade, countered these results, dragging the final results down.

Overall, therefore, according to the Office for National Statistics (ONS), the UK economy grew by 2.2% through the whole of 2015. Whilst this reflected the smallest growth rate seen since 2012, it should be emphasised that the UK is still one of the most robust and fastest growing economies of the developed nations.

This dichotomy in sector growth was emphasised by the Chancellor of the Exchequer, George Osborne, who in January this year was reported to have said the UK economy was still likely to see a “dangerous cocktail” of economic risks in 2016. These significant challenges include tension in the Middle East, low commodity prices and slowing growth in China, weighing on global confidence.

The fourth quarter of 2015 represented the 12th consecutive quarter of growth here in the UK. Prior to this between 2009 and 2012 the UK showed erratic quarterly growth. This prompted Joe Grice, the Chief Economist of the ONS, to state: “Once again, the buoyancy of the services sector has offset the relative sluggishness of the rest of the UK economy.”

Meanwhile, the International Monetary Fund (IMF), based in Washington, USA and headed by Christine Lagarde, warned that although the UK’s economy has been “strong”, the forthcoming referendum on the UK’s continued membership of the European Union, now scheduled for June 23rd, brought “risk and uncertainty” to the global economy as a whole, which was already “highly vulnerable to adverse shocks.”


Issued by: Enable Independent Financial Life Planners • 
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Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
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MARKETS: (DATA COMPILED BY THE OUTSOURCED MARKETING DEPARTMENT)

Equity markets had a torrid February, with most global commodity prices continuing to fall, a failure to address the glut in oil production and the UK’s decision to officially call the referendum on its membership of the European Union, all conspiring to unsettle the markets.

 Here in the UK, the FTSE100 had at one point (Feb 11th) fallen by 9% to 5,537.0, only to recover and actually finish February higher at 6,097.10, to show a meagre rise of 0.22%. The wider FTSE250 followed suit, registering a modest rise of 0.7% to end February at 16,603.1. However, the junior AIM market failed to recover its earlier losses closing at 692.90, for an equally modest decline of 0.12%.

Across the pond the Dow Jones index closely followed the global trend, suffering intra-month losses, but regaining late ground to finish at 16,516.5, a small rise of 0.3%. The NASDAQ, heavily influenced by technology stocks, fared worse, losing 56 points to 4,557.95, so ending 1.21% lower.

Mainland Europe suffered, as economic woes continued with the Eurozone flirting with renewed recession, as inflation there turned negative. The Eurostoxx50 lost just short of 100 points to 2,945.75 a fall of 3.26%.

In Japan, the Nikkei255 index saw the worst falls, losing 8.51% to 16,026.76, as the continuing ‘Abenomics’ of fiscal stimulus, failed to rejuvenate the stagnant domestic economy.

As a direct result of the impending UK referendum of leaving the EU, Sterling was sold off, falling 2.8% against the US Dollar to $1.39 and saw a larger fall of 3.79% against the Euro to end the month at €1.27. At the same time, the Euro managed to hold its ground against the Greenback remaining at $1.08.

Gold had a good month, as its safe-haven status attracted buyers, with the metal rising by 10.45% over the month, to close at $1,234.9 a troy ounce.

Meanwhile, ‘Black Gold’ – oil – again saw volatile markets, with uncertainty around global production levels remaining. The Brent Crude benchmark price did manage to rise though by 2.03% to $36.64 a barrel.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
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UK growth forecase cut by the Bank of England

According to the Bank of England’s (BoE) latest forecast, as reported in their ‘Inflation Report’ (IR) released in early February, economic growth in the UK for 2016 will be reduced to 2.2%, a fall from their November forecast of 2.5% growth.

 At the same time, the IR downgraded its growth forecast for 2017 to 2.3% from its previous forecast, made in November 2015, of 2.6%.

UK average weekly wage growth forecasts were also downgraded, as the BoE now expects such growth to be 3% in 2016, down from its previous forecast of 3.75%. The report stated that it had: “eased significantly more” than anticipated. The Bank now believes that it will not be until 2018 that average weekly earnings will increase to the levels seen prior to the financial crisis.

At a recent conference the Governor of the BoE, Mark Carney, stated that there were some positive signs for the UK economy, including, “Sterling has fallen 3.5% since November. It’s the largest decline between inflation reports since the crisis.” Any fall in the exchange rate of sterling against our trading partners’ currencies makes UK exports cheaper and should, therefore, boost our competitiveness in the global market place.

The BoE also released the minutes of its latest Monetary Policy Committee (MPC), which sets interest rates. This disclosed that they voted unanimously 9-0 to hold interest rates at their historically low rate of 0.5%. It was interesting to note here that one member of the MPC, Ian McCafferty, who had previously been considered a Hawk by voting to raise interest rates in their August meeting, this time voted for no change.

Issued by: Enable Independent Financial Life Planners • 
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Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
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The important services sector continues to flourish

In January, the closely followed Purchasing Managers Index (PMI) for the UK’s services sector, compiled by the Markit/CIPS index (CIPS), was set at 55.6, a fraction higher than the 55.5 recorded in December. Any figure above 50 indicates that output in the sector is expanding. The services sector is by far the biggest element of the UK’s economy, accounting for over 75% of the nation’s Gross Domestic Product (GDP).

Further reinforcing the good news surrounding the UK economy, earlier in the month CIPS reported the construction sector at 55.0 and the manufacturing sector at 52.9.

Commenting on these results Chris Williamson, the Chief Economist of CIPS said: “The three PMI surveys for January collectively point to a slight upturn in the rate of economic growth, consistent with GDP rising at a quarterly rate of 0.6% in the first quarter, up from 0.5% in the fourth quarter (of 2015), if current levels are sustained.”

However, he went on to caution that: “cracks are beginning to appear in the country’s resilience to the various headwinds.

“Worries about a Chinese ‘hard landing’, financial market jitters, higher interest rates in the US, more austerity at home and the possibility of ‘Brexit’ and EU tensions have collectively pushed the business mood in the dominant service sector to its darkest for three years.”

On a more positive note, in early January, the National Institute of Economic and Social Research (NIESR) predicted that the UK economy would grow by 2.3% in 2016. This forecast is unchanged from their previous estimate published in November.

Issued by: Enable Independent Financial Life Planners • 
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More Pension changes ahead?

It is highly likely that the Chancellor is finalising plans that could see the most attractive aspect of pension saving i.e. the boost given to contributions in the form of tax relief curtailed or even scrapped. The Treasury insist that a decision has not yet been made, but those close to Number 11 say a reduction in tax relief for higher earners is “almost certain” and that that cut is likely to be announced in the Budget on 16th March.

Last year an extreme model was being mooted suggesting Mr Osborne might scrap pension tax relief altogether, by doing so he could net the Exchequer a huge £35bn annual saving and align the pensions system with Isas through the creation of so‑called “pension-Isas”.  But current sources suggest that this not the Government’s preferred “solution” to cap the cost of pension tax relief. But the most likely outcome could be a further cut back to the relief available to higher earners.

If you are one of those 4.5 million people who pay 40pc tax on the top part of your income, you are likely to lose tax relief at the 40pc rate, the relief is likely to be limited to 20pc, or the basic rate of tax. For every £100 a basic-rate taxpayer contributes to a pension, the Government adds a further £25. For every £100 a higher-rate taxpayer contributes, the state adds this £25, and the taxpayer can then claim a further £25 relief via his or her tax return. In total the benefit for a higher-rate taxpayer is thus £50 for a net £75 contribution – or a 67pc uplift. And this is probably what the Exchequer will target.

Source: The Telegraph


Issued by: Enable Independent Financial Life Planners • 
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Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
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Do you want to be a 'company landlord'?

Enable’s IFA’s in Bishops Stortford know that a diverse portfolio is the best method for wealth management and with some already invested in property letting becoming a company landlord is an option. According to Mortgages For Business there has been a substantial increase in the number of buy to let mortgage applications made by limited companies.  They suggest this indicates that more landlords are incorporating as a way of getting round some of the recent curbs on landlords’ mortgage interest tax relief.

According to Mortgages For Business, limited company applications accounted for 43 per cent of its new BTL activity in January - up from 38 per cent in December.  “Landlords have woken up to the fact that transacting via a corporate vehicle is a feasible option and in many cases, the most prudent route going forward. I wouldn’t be surprised if the percentage continues to rise as landlords, especially the higher tax rate-paying ones, prepare for the forthcoming changes to relief on finance costs” according to David Whittaker, managing director of Mortgages for Business.

The overall number of BTL applications dealt with by the company in January, from individuals and limited companies combined, was 27 per cent more than a month earlier - an indication that landlords are trying to beat the April 1 deadline when the government’s three per cent stamp duty surcharge comes in to effect on buy to let property purchases. “The increase is due to landlords trying to get as many purchases as they can complete before the surcharge, after which I would expect transactions to return to more considered levels” said Whittaker.

Source: Landlord Today


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Looking to buy a house?

Enable’s IFA’s in Bishop’s Stortford like many others have seen that according to the Nationwide housing market appreciation continued at 4.4 per cent in the year to late January. Meaning the average price of a home in the UK stands at £196,829. Nationwide chief economist Robert Gardner says “the labour market appears to have significant forward momentum. Employment has continued to rise at a robust rate in recent months and, while the pace of earnings growth has slowed somewhat, in inflation-adjusted terms regular wages continue to rise at a healthy pace.”  “But the market is already characterised by a shortage of stock, with the Royal Institute of Chartered Surveyors reporting that the number of properties on estate agents’ books remains close to all-time lows”.

Alongside this the average deposit for a property has risen 15 per cent in the past year and currently stands at over £80,000 according to one mortgage broker. And the data, from the Mortgage Advice Bureau, says a typical buyer’s loan-to-value fell to 68.2 per cent in December, representing an annual decrease of 1.1 per cent. The broker firm says this is the lowest LTV seen since June 2010, and suggests borrowers are shouldering more of the cost of their house purchase themselves.

The continuing volatility of the market can be seen by other data from Mortgage Advice Bureau, which shows that affordability - based on the typical buyer’s income expressed as a percentage of property price- has been worsening for three months. If you are struggling to make sense of it all Enable's experienced IFAs are happy to talk you through mortgage options.

Your home could be at risk if you do not keep up your repayments

Source: Estate Agent today

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE