UK Government debt

 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 

UK inflation figures July 2106

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 

Commercial property funds suffer from Brexit vote

One of the early victims of the ‘Leave’ vote was the UK commercial property funds sector. Many funds have marked down their portfolio valuations substantially, as investors attempt to head for the door. As a measure of the mark downs, Aberdeen Asset Management’s property fund value was cut by 17%.

To compound the problem investor’s face, several commercial property funds, including M&G, Aviva, Henderson and Standard Life have imposed restrictions on redemptions. At the time of writing, five funds remain suspended.

Investment in UK commercial property funds accounts for approximately 7% – equating to £35bn in value terms – of total invest in the commercial property sector.
The problem these funds face in volatile markets, such as that created by the Brexit vote, is the illiquid nature of their assets.

A recent Bank of England report revealed that banks reduced lending to the commercial property sector for the first time in four years ahead of the referendum, signalling a fear over price falls. Banks are expected to impose further restrictions on lending to the sector.
Commercial property rent yields grow despite Brexit worries
Despite the uncertainty surrounding the direction of the commercial property market here in the UK, after the ‘Brexit’ decision, commercial property rents grew by 0.2% in June, according to the latest CBRE Index.

At the same time they reported capital values grew by 0.1%, although this was a reduction from the 0.2% reported in May. They went on to add that with total returns at 0.6% for the month, these matched historical returns seen every month of this year so far.

The Head of Research at CBRE, Miles Gibson, was reported to have said: “Overall, rents and capital values continue to grow in June, with the industrial sector in particular showing strong growth in a month of significant uncertainty.”

Good value opportunities in business space

In the annual Total Office Costs Survey (TOCS), compiled by property agents Lambert Smith Hampton, Preston has emerged as the cheapest location in the UK for the ‘total cost’ of new business space. At £52.73 per square foot it just pipped Norwich to the title, where total business space now costs £52.94 per square foot. In third place was Belfast where costs came out at £53.22 per square foot.

This ‘total cost’ figure is calculated by assessing the rates, rent, fit-out (including furniture), security, cleaning, insurance, waste disposal, energy, and management fees payable.

By comparison, such new building ‘total costs’ in the City of London was calculated at £127.76 per square foot.

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  

Mortgage Activity - July 2016

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 

UK Unemployment figures - July 2016

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 

Property Market Review 2016

Our monthly property market review is intended to provide background to recent developments in property markets as well as to give an indication of how some key issues could impact in the future.

We are not responsible or authorised to provide advice on investment decisions concerning property, only for the provision of mortgage advice. We hope you will find this review to be of interest.

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 

Saving habits start young

Enable’s IFA’s in Bishop’s Stortford know that it is not a brilliant time for savers in the financial world but at the same time saving money is invaluable. If you want your children or grandchildren to have a healthy attitude to money and learn how to budget and save what would be on your list of advice?

One thrifty mum has come up with a list some of the things she does with her children to help them learn about money, starting with the way you deal with money yourself, the way you talk about it and your attitude towards money and material things. She suggests being open and honest with them about how much we get paid and how much the bills are so they have a sense of reality.

Pocket money is a great way to teach them to budget, in order to teach them how to manage their own money.  This savvy couple pay their children pocket money for doing their main jobs but they take away pocket money if the jobs aren’t done properly and they give the kids a few small jobs so they can earn extra money if they want to. 

Another idea is to put the money your children earn for chores into a savings pot and then each time they want to buy something they need to count out the money, this will help children to appreciate how much things cost and how much work goes into having the money to be able to earn that cash.  Enable’s IFA's in Bishops Stortford know it’s never too early to start learning about managing money.

Source: http://www.frugalfamily.co.uk/teach-kids-about-money/

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 

Post Brexit investments

Enable’s experienced IFA’s in Bishops Stortford note that according to Metlife, six out of 10 financial advisers are becoming concerned about a significant financial correction this year and one in three are planning to contact clients about protecting their pension savings in the next three months. This summer despite the political and economic turmoil created by Britain's unexpected decision to leave the EU, the FTSE 100 has surged by almost 9 per cent to a one-year high.

If you are an investor who is close to retirement, checking in with how to lock in any gains made by the recent market surge might be worth considering. According to the same report Advisers have already seen a surge in inquiries about retirement planning since Brexit, with 17 per cent saying they have been contacted by clients asking for retirement planning reviews, whilst, 15 per cent have been asked about guaranteeing funds.

The FTSE 100 has in part climbed higher on the back of the base rate cut from the Bank of England, and its £170billion stimulus package but this is likely to prove unsustainable. Simon Massey, wealth management director at MetLife UK, who conducted the research, says 'The predictions of doom and disaster after the Referendum vote have so far been proved wrong with the initial shock turning to a market surge, a so-called 'Brexit bounce”, but it is becoming  clearer clients are adjusting their risk appetite.' Clients still want and need to invest but many are re-adjusting their attitude to risk. They are focused on guaranteeing and capturing gains while they can, while accepting that uncertainty is here to stay for the foreseeable future...' he added.

Enable’s IFAs in Bishop’s Stortford are happy to talk you through your attitude to risk and help with long and short-term financial planning.

Source: http://www.thisismoney.co.uk/money/pensions/article-3735863/Advisers-lock-pension-clients-gains-Brexit-Bounce.html

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 

Inheritance Tax reforms

After the news of the billionaire landowner the Duke of Westminster’s death, Enables IFA’s in Bishops Stortford have followed the news that his 25 year old son will inherit the family estate and a £9bn fortune making him the third wealthiest landowner in Britain and 68th wealthiest person in the world, according to Forbes. At the heart of this fortune is the 300-year-old Grosvenor estate in London, which began in 1677 as 500 acres of land including Mayfair and Belgravia and including Eaton Square, built close to Buckingham Palace and the Houses of Parliament during the housing boom that followed the Napoleonic wars.

The Grosvenor property firm is probably the largest property management company in the UK by value. And if the Grosvenor estate had been liable for 40% inheritance tax, the amount owed to the Treasury would have been close to the government’s entire death duty taxation for the last financial year. Britain’s generous trust law however ensure that many of the country’s largest fortunes are largely kept intact.

“The benefits of trusts are that they don’t form part of somebody’s estate,” says Ian Dyall, of Towry.  Instead of one-off taxation, trusts are subject to charges every 10 years from the anniversary of their creation. Known as the inheritance tax periodic charge, it can amount to 6% of the funds held. Pressure groups have been calling on the government to publish a new central register of trusts, which names their beneficiaries and settlors. They want an obligation to publish annual accounts for those collections of assets deemed to have public interest.

George Hodgson, interim chief executive of the Society of Trust and Estate Practitioners, on the other hand has argued for central registers to remain private because many beneficiaries are children or vulnerable adults and protect businesses. “An awful lot of trusts are used to hold family businesses, be they farms or manufacturing businesses. Successive governments have decided that is in the best interests of the economy and therefore the public at large.” Having an estate to pass on can be a tricky business but Enable’s IFAs in Bishops Stortford can help you make the best of your inheritance options.

Sources:
https://www.landlordtoday.co.uk/breaking-news/2016/8/25-year-old-man-to-inherit-9bn-buy-to-let-portfolio
https://www.theguardian.com/business/2016/aug/11/duke-westminster-hugh-grosvenor-inheritance-tax-reform
https://www.theguardian.com/money/2016/aug/11/inheritance-tax-why-the-new-duke-of-westminster-will-not-pay-billions

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  

Level-term Life insurance

Enable IFA’s in Bishop’s Stortford know most clients who have a family make sure they take on some life insurance. Sadly around one child in nearly 30 loses a parent before they grow up and the very natural grief and shock can be compounded by a loss of income and financial crisis.  Thankfully life insurance is one of the cheapest and easiest ways to protect your family's finances should the worst happen in your family.

There are many different types of life insurance but one key insurance policy is taken out to provide money for your family if you or your partner dies, it’s called 'level term' life insurance.  It’s the simplest type of life insurance and the name actually tells you all you need to know. It does what it says on the tin - Level means you always get a set amount paid out regardless of when you die during the term, eg, £250,000 and Term means you only get the pay-out if you die within a fixed term, eg, within 20 years or before you are 65.  The insurance cover guarantees a lump sum pay-out upon death to your dependants within a fixed time, for example, £250,000 if you die within the next 20 years.

Obviously you can determine the Level and the Term to meet your individual requirements and suite the needs of your family or dependants best. Enable's IFA's can help you decide what the best policy is for your circumstances.

Source:  Money Saving Expert

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 

What about savers?

Enable's IFA’s of Bishop’s Stortford can see that once again it is the savers who will be disadvantaged by recent cuts in interest rates. “The lenders and the borrowers are doing just fine as interest rate fall and cheap mortgages and zero rate credit card deals abound. The plight of savers is the real tragedy,” says Claer Barrett is the editor of FT Money.

The cut may be small but for savers who have endured dwindling interest rates for years it looks as if they are stuck with them for longer, as rising inflation erodes the value of cash. Hargreaves Lansdown estimates that since 2008, savers have theoretically lost £160bn worth of interest payments (based on rates at 2008 levels).

So what can savers do? Claer Barrett suggests starting with looking at your mortgage, if you have an interest rate of less than 1 per cent then rates are unlikely to go up for some time so why not drop to the minimum repayment then with the cash saved instead of putting it into a savings account you could top up your pension with a monthly AVC (additional voluntary contribution) It is always worth exploring how much you can put into your pension. The annual allowance (capping what most people can pay in tax efficiently) is £40,000, although this could taper down to just £10,000 if your total income is over £150,000.

If you are thinking about how to balance your borrowing and saving to make the most of the current climate Enables IFAs in bishops Stortford can help talk you through your options.

YOUR HOME COULD BE AT RISK IF YOU DO NOT KEEP UP YOUR MORTGAGE REPAYMENTS

Source: FT Money

Bank of England interest rates cut to 0.25%

What does it mean for your mortgage?  Enable’s IFAs in bishops Stortford know that a mortgage is without doubt the biggest debt taken on by the majority of households in the UK. Its estimated 11.1 million households have one and the average amount still left to pay on each home loan is £116,000, according to the Council for Mortgage Lenders.

Mortgage holders who will see an immediate benefit from the cut are those people who have bank rate tracker mortgages, as their loans have an interest rate that goes up or down in direct relation to the Bank of England's decision. One in five mortgage holders have this type of loan.

But nearly a third of mortgage holders (29%) have home loans that are on the standard variable rate which is also the default option after a fixed term has run its course and these borrowers will be in the hands of the lender. Some mortgage providers may pass on cuts in full, some may decide on a partial cut, whilst others may make no change at all given the historical low levels of interest rates. However the Bank of England’s governor Mark Carney has said banks have "no excuse" not to pass on the cut to households.

Almost half (46%) of all mortgage holders are on fixed-rate mortgages and they will see no change in their mortgage rate. However, if their mortgage term is up soon, they may find they pay less if or when they sign up to a new one. Fixed mortgage rates on new deals have been falling even when there was no change to the Bank rate. An increasing number of people have signed up to longer term fixed rate deals for up to 10 years. If you need to renew or review your mortgage Enables IFA’s in Bishops Stortford are happy to help.

YOUR HOME COULD BE AT RISK IF YOU DO NOT KEEP UP YOUR MORTGAGE REPAYMENTS

Source: BBC

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 

Mortgage rates at an all time low

Enable’s experienced IFAs in Bishops Stortford can see that borrowers are in a period of the lowest two-year, five-year and 10 year fixed mortgage rates on record. The average two-year fixed mortgage has tumbled from 2.68pc to 2.48pc in the last 12 months, according to financial data firm, Moneyfacts. Five-year fixes are at 3.08pc and the average 10-year fixed rate mortgage has dropped from 3.74pc to 3.37pc in a year.  The latest rates are the lowest ever recorded by Moneyfacts.

A number of factors have contributed to these tumbling mortgage rates.  Swap rates, the inter-bank lending rates, dived after the UK voted to leave the EU meaning providers can borrow cheaply, they are able to pass on savings to customers. This has especially impacted the 10-year fixed mortgage market. Longer term deals are now widely available as providers can afford to offer them. At the start of the year there were 80 10-year fixed mortgages – in July this had increased to 130. Competition is also fierce between providers at the moment, driving down mortgage rates and deals could get even cheaper.

Standard Variable Rates may also come down but there are much better deals out there at the moment the average SVR standing at 4.8pc a cut in Bank Rate will have little effect. Borrowers sitting on this option would be significantly better off if they shopped around and opted for a low fixed rate deal instead. Borrowers should not expect mortgage rates to continue falling forever. The Government backed Funding for Lending Scheme, which started lending providers cheap money in 2012, is coming to an end in 2018 when the cash runs out rates could start to rise.

Your home could be at Risk if you do not keep up the repayments.

Source: The Telegraph

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 

Stamp Duty Surcharge Figures Released

Enable’s IFAs in Bishops Stortford know that many have turned to Buy-to-Let to help bolster pensions and lifestyle expenses. With the introduction of a higher Stamp Duty on a second home being introduced recently the real impact is just coming to light with the first figures from HM Revenue & Customs (HMRC) following the 1st April Stamp Duty surcharge for buy-to-let landlords and second homebuyers being released recently.

The figures might be able to help you decide if the buy to let market if for you. The number of property sales worth less than £250,000 was 6% higher in Q2 than the previous quarter, and 8% higher than in the same period last year. The amount of transactions worth between £250,000-£500,000 in Q2 was 2% lower than Q1, but 12% higher than in Q2 2015. HMRC’s data also shows that there were 9% fewer transactions worth over £500,000 in Q2 than the previous quarter, but 18% more than in the same quarter last year. The estimated Stamp Duty yield for Q2 2016 was £1,977m from residential transactions and £724m from non-residential transactions. This is 13% higher than the previous quarter, and 28% higher than Q2 2015.

Andrew Bridges The Managing Director of estate agent Stirling Ackroyd said: “The volume of properties sold keeps growing, and it’s at the lower end of the market where momentum is at its highest. It may be too early to call, but it seems the Government’s changes aren’t off-putting buyers from snapping up those additional properties.” If you are wondering if a second property is for you Enable’s IFAs can talk you through the options.

Source: Landlord News


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