News in Review

“The near-term outlook for prices is now more mixed”

The latest UK inflation data for September was released by the Office for National Statistics (ONS) last week, disclosing that the overall Consumer Prices Index (CPI) rate unexpectedly remained at 6.7%, ending three consecutive monthly declines. This clearly exemplifies that the battle with inflation is still at play, and at 6.7% remains the highest of any major advanced economy.

An increase in motor fuel prices during the month was a prime contributor preventing a decline in the rate. Meanwhile, the largest downward contributors during the month were food and non-alcoholic beverages, where prices fell by 0.1% on the month for the first time since September 2021, according to ONS, led by soft drinks and dairy produce.

Lead Economist at the Confederation of British Industry (CBI) Alpesh Paleja commented on the data, “Inflation has once again surprised on the upside by staying put in September. While we expect it to resume falling in the months ahead, the near-term outlook for prices is now more mixed. The recent rise in global oil prices may mean that the path back down is bumpier.”

Looking ahead, with the next Bank of England (BoE) Monetary Policy meeting in early November, Paleja added “It’s unclear if today’s data calls time on further rate rises, but either way, it’s still very likely that interest rates are close to their peak, with the stance of monetary policy now judged to be restrictive. The Bank has signalled that rates are unlikely to be cut anytime soon.”

Policymaking “reset” required according to think tank

Last week the Resolution Foundation said the British government should consider increasing the Bank of England’s inflation target from 2% to 3% in the future. Saying a policymaking “reset” was required. Research Director at the Resolution Foundation James Smith elaborated, “This reset would ensure we can support the economy in bad times and fix the fiscal roof when the sun eventually arrives.” The report from the leading think tank highlighted that reform of the BoE and Treasury’s economic toolkit was required to avoid years of rising debt or austerity.

Forecasting faux pas

The Office for Budget Responsibility (OBR) is due to publish the next set of economic forecasts alongside Jeremy Hunt’s Autumn Statement on 22 November. However last week the financial watchdog, in its Forecast Evaluation Report, admitted to making ‘genuine errors’ in its March 2021 and March 2022 forecasts by underestimating the impact of the pandemic and the invasion of Ukraine. OBR stated that the intensity and ramifications of price spikes, and state support schemes, had been overlooked and it had also ‘overestimated the level of economic activity’. Accordingly, the government borrowed over £29bn more in 2022-23 than the OBR had predicted in March 2022. Although ‘unforecastable shocks’ impacted the accuracy of the forecasting, the OBR acknowledged, ‘some differences are due to genuine errors, which would have been corrected before the forecast was finalised if we had spotted them.’

Warm weather impacts retail sales and consumer confidence takes a tumble

ONS statistics released on Friday showed the joint warmest September on record had a knock-on impact on retail sales, as people chose not to purchase colder weather attire as temperatures held firm. Economists had expected a 0.2% fall in sales volumes last month, however a 0.9% reduction was reported. While sales of non-essential goods were subdued, fuel sales rebounded, registering 0.8% growth in the month, following a 1.0% fall in August. Food sales also improved, rising 0.2% in September.

Consumer confidence has taken a tumble in October according to the latest GfK monthly measure, as households become more anxious about the prospects for the economy and their personal finances. The overall index gauge of consumer optimism fell to a three-month low of -30 in October, down from September’s reading of -21. Client Strategy Director at GfK, Joe Staton commented on the decline in confidence, “This sharp fall underlines that the cost-of-living crisis… the fierce headwinds of meeting the accelerating costs of heating our homes, filling our petrol tanks, coping with surging mortgage and rental rates, a slowing jobs market and now the uncertainties posed by conflict in the Middle East, are all contributing to this growing unease.”

Here to help

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

All details are correct at time of writing (25 October 2023)

Time to crackdown on ‘finfluencers’

Influencers who generate content on financial topics are rapidly rising in popularity on social media, having been dubbed ‘finfluencers.’ 

The good news is that finance is becoming more accessible and appealing to younger generations through bite-sized, more light-hearted formats. Coupled with a lack of financial education in their school years, Gen Z and millennials are increasingly turning to finfluencers to improve their financial education and boost their levels of financial literacy. Unfortunately, this demand is not always being met by those qualified or experienced enough to educate others. 

City watchdog involvement  

The Financial Conduct Authority (FCA) is working with the Advertising Standards Authority to help educate influencers and consumers about the risks involved in promoting financial products. 

Sarah Pritchard, FCA Executive Director, Markets said, “We’ve seen more cases of influencers touting products that they shouldn’t be. They are often doing this without knowledge of the rules and without understanding of the harm they could cause their followers. We want to work with influencers so they keep on the right side of the law, as this will also help protect people from being shown scams or investments that are too risky.” 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. 

Residential Property Review – October 2023 

Conditions remain challenging  

The residential sales market continues to be challenging, according to the latest UK Residential Survey by the Royal Institution of Chartered Surveyors (RICS), with demand, sales, instructions, and prices remaining in negative territory. 

At a national level, new buyer enquiries recorded a net balance of -39% in September, which although weak, is marginally less negative than the previous month’s reading of -46%.  

The new listings headline net balance was -17% in September (compared to -26% in August). Agreed sales remain firmly negative, with a national net balance of -37%, but this reading is less downcast than readings of -46% and -45% seen in August and July respectively. 

Looking at twelve-month sales expectations, the outlook is more positive, with a net balance of +3% (up from -5% last time) signalling a much more stable trend in sales volumes emerging over the year ahead. 

Rental properties receive 25 tenant enquiries  

Over the last two years, average rental prices have continued to rise and there have been more people looking to rent homes than there have been properties available. 

According to Rightmove, the number of tenants looking to move now, compared to 2019, has increased by more than 40%, while the number of available homes to rent has dropped by 35%. Because of this mismatch, letting agents are receiving an average of 25 enquiries from prospective tenants for every home available to rent. This has risen from eight enquiries per property in 2019 and is five more than in May of this year. 

Rightmove’s Tim Bannister commented, “The number of new rental properties coming to the market is now at its highest level since the end of last year. While it is likely that there is some way to go before this filters through to rental prices, if the improving trend between supply and demand continues, we could start to see the pace of yearly rent rises slow more significantly than it has been.” 

BoE concerns over longer mortgage terms 

Consumers are taking out longer mortgages to cope with higher interest rates and living costs, potentially storing up debt troubles in future, the Bank of England (BoE) has said. 

According to the central bank’s Financial Policy Committee (FPC), the proportion of mortgages lasting 35 years or more has increased from 4% in the first three months of the year to 12% in the second quarter. The FPC said that longer mortgages account for a small share of total mortgages and ‘Such lending will be bound by Financial Conduct Authority responsible lending rules requiring lenders to take account of future changes to income and expenditure, such as the borrower retiring, where that is expected to happen during the mortgage term.’ 

The UK has a relatively short-term mortgage market compared with some countries, including USA, where the average mortgage term is 23.3 years. 

All details are correct at the time of writing (19 October 2023) 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments 

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission. 

Commercial Property Review – October 2023

Industrial and warehouse space in demand  

New analysis has highlighted that the most in-demand UK commercial property sector currently is industrial/warehouse space, as companies look to facilitate and improve their ability to deliver online purchases to customers as efficiently as possible.  

According to data from Sirius Property Finance, buyer demand for hospitality and leisure assets continues to be subdued. As cost-of-living pressures weigh on consumers’ pockets, many are choosing to tighten up their household spend on leisure and hospitality pursuits, dampening investors’ appetite for space. 

Warehouse and industrial space remain in “rude health” according to Nicholas Christofi, Managing Director of Sirius Property Finance, who added, “It’s the one corner of commercial property that thrives in partnership with the internet as more and more businesses look for ways to fulfil the logistical requirements of online retail.” From a regional perspective, the West Midlands is seeing the highest demand with 43.2% of listed stock sold subject to contract. The largest quarterly uptick in demand was from the South West, at 3.8%.  

Office space demand in England is registering 27.6%, a quarterly fall of 2.7%, while retail space demand is 23.5%, a quarterly reduction of 0.9%. Looking at office and retail space, Christofi highlighted that although demand is subdued, “an awful lot of thought is going into how to reimagine the way such spaces are used and how to bring vitality back to what was, not so long ago, a vital part of our nation’s ecosystem. For savvy investors and equally savvy developers, the opportunities presented by this evolution are immeasurable and it’s truly exciting to see what our relationship with retail and office space becomes.” 

Buy-to-let landlords focus on commercial property 

For buy-to-let landlords disillusioned by lacklustre returns and high taxes, new research from specialist lender Shawbrook, shows an enhanced interest in commercial property for those looking to diversify their investments away from residential assets. 

Almost a fifth (19%) of landlords are contemplating commercial property investment, while over a third (35%) who already own commercial property within their portfolio are looking to expand their assets in this area. This comes at a time when the high street focus is on local independent shops, which Shawbrook says is emphasising ‘the importance of good commercial properties in towns and cities.’ Accordingly, those with larger property portfolios are more likely to have already entered the commercial sector as landlords seize the opportunity to support communities.  

Managing Director of Real Estate at Shawbrook, Emma Cox commented on the trend, “Fluctuating prices and high borrowing costs are hampering confidence in the residential property sector… The increase in workers returning to offices and the evolution of local high streets are two examples of areas where landlords will be seeking opportunities to invest, and those who already own commercial properties will be looking to add more.  

She continued, “Landlords could become the unsung heroes of the high street, with many planning to support their local communities by injecting new life into commercial properties and retail units.” 

Realistic pricing and growth prospects motivate investors 

Savills most recent Market in Minutes, analysing the UK commercial property market, has outlined that although interest rates aren’t expected to start falling until the third quarter of 2024, ‘the fact that investors can now start to believe that the next move is downwards will be important for market pricing and activity over the next six months’.  

Their investment sentiment survey highlighted that 80% of respondents plan to invest in UK commercial property during the next 12-month period, motivated by realistic pricing versus other markets and growth prospects.  

Those sectors where potential purchases can appreciate the combination of yield strengthening and robust rental growth prospects will experience pricing recoveries first. Savills believe prime logistics and office space in the West End of London to ‘lead the recovery phase of this cycle.’  

The most notable downward shift in sentiment was evident with Central Business District (CBD) office space. When surveyed in 2022, half of investors intended to deploy capital into that sector, with only 29% saying the same in the 2023 survey. Despite the challenges the office sector has faced, Savills anticipate change as, ‘it becomes more widely recognised how strong the prime office market actually is.’ 

All details are correct at the time of writing (19/10/23) 

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission. 

News in Review

“The UK economy is holding up but remains in a precarious state”

The most recent data from the Office for National Statistics (ONS) highlighted a modest 0.2% expansion in August, following a sharp 0.6% reduction in July. The monthly growth was in line with expectations from a Reuters poll of economists.

Contributors to the growth experienced in August included a 0.4% rise in services output, which offset a decline in manufacturing, and the adverse effect of the US TV and film writers’ strike, which has impacted elements of the British film industry.

The return to growth has fuelled expectations that Bank Rate may be held unchanged at the next Monetary Policy Committee in early November. Jeremy Hunt said the data demonstrated that the UK economy “is more resilient than expected.”

The bigger picture remains one of sluggish growth, with Head of Research at the British Chambers of Commerce David Bharier, commenting on the data, “The UK economy is holding up but remains in a precarious state.”He continued, “The production sector in particular has seen worrying data revisions showing stark monthly falls in growth.”

“We’re above the Bank of England estimate”

During the annual World Bank and International Monetary Fund (IMF) conference in Marrakech last week, the IMF outlined its latest forecast, which showed the UK would be the slowest-growing Group of Seven (G7) nation in 2024. They predict the UK economy will grow by 0.5% this year, surpassing a previous estimate of a 0.3% reduction. However, the IMF expects the UK will have the highest inflation and slowest growth next year of any G7 economy, lagging Japan, Canada, Italy, USA, France and Germany.

The Treasury felt the IMF’s assessment was too pessimistic, saying that recent revisions to UK growth had not been factored into the IMF’s report. Pierre Olivier Gourinchas, Chief Economist at the IMF responded, “We’re above the Bank of England estimate [for growth] for next year, so I don’t think we are particularly pessimistic. I think we’re trying to be honest interpreters of the data.”

‘Navigating Global Divergences’

The IMF bi-annual outlook entitled ‘Navigating Global Divergences’ retained its global growth forecast for 2023 at 3.0%, lowering to 2.9% for next year. These levels of growth come in under the historical (2000–19) annual average of 3.8%. As policy tightening measures weigh, the IMF expects advanced economies to slow to 1.5% this year and 1.4% next, while developing economies and emerging markets are expected to record growth of 4% this year and next.

The report highlights that although signs of economic resilience presented earlier in the year, efforts to reduce inflation continue to ‘cool economic activity.’ Regional divergences to global growth prospects remain, as many areas struggle to return to pre-pandemic output levels.

“A new cloud”

Referring to the conflict in Israel and Gaza, Kristalina Georgieva IMF Managing Director said the organisation was keeping a close eye on the fast-evolving situation. And although it’s prematureto fully quantify the impact of the conflict, it was “a new cloud on not the sunniest horizon for the world economy.”  She continued, “We are experiencing severe shocks that are now becoming the new normal for a world that is weakened by weak growth and economic fragmentation.”

A crucial quarter for retail

As the ‘Golden Quarter’ for retailers gets underway, data from the British Retail Consortium (BRC) has shown a slowdown in volumes during September (2.2% versus growth of 2.7% in August). Below the 12-month average of 4.2%, it seems that the warmer weather during September deterred shoppers from stocking up on new autumnal attire.

Pay overtakes inflation

Average pay growth has risenrose above inflation for the first time in almost two years, signalling a possible easing to the squeeze on living costs. According to official figures from ONS, wages rose by 7.8% between June and August, which is higher than average inflation over the same three months. There continues to be a gap between public and private sector pay – wage growth for public sector workers reached 6.8% between June and August, the biggest increase since comparable records began in 2001; whereas the average pay rise for private sector employees was 8%.

Here to help

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. All details are correct at time of writing (18 October 2023)

Investor implications – Dividend Allowance cuts

With the UK in the midst of a sharp tax-raising drive, understanding the full impact of fiscal changes on investments has arguably never been so critical. One area that has been subject to particularly draconian reductions is Dividend Allowance, with changes in this area likely to have a significant impact on many investors. 

Six-year slide 

The annual tax-free Dividend Allowance was first introduced in 2016/17 and originally stood at £5,000. In 2018/19, it was reduced to £2,000, and was then halved to £1,000 from the start of the current tax year. This figure is set to halve again next April to stand at £500 – overall, this equates to a 90% reduction in the value of the allowance in the space of just six years. 

Implications 

Once an investor uses up their annual allowance they are liable for Income Tax on dividends, with the rate payable based on the Income Tax band they fall into. These changes will therefore inevitably increase the tax pressure on any individuals who own significant dividend-paying stocks or rely on dividends as a primary source of income. 

Other options 

The Dividend Allowance is just one of the tax-free allowances investors can utilise in the UK. As a result of the cuts, it could therefore be increasingly beneficial for dividend-heavy investors to explore routes that offer exemption from dividend tax on qualifying shares, such as ISAs (which are also free of Capital Gains Tax). Alternatively, it may be appropriate for some investors to consider equity options that prioritise long-term capital growth over dividend payments. 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. 

Mortgages – keep calm

After successive Bank Rate rises, the cost of a mortgage hit a 15-year high in July and will likely stay high for much of the next year. In unpredictable and unsettling times, here are some ways for mortgage holders to keep a cool head. 

Help is available 

If you’re worried about your mortgage payments, in the first instance, seek help from your lender, to come up with a payment plan to help you get back on your feet. Repossession is a last resort; in the first three months of this year, only 750 homes and 410 buy-to-let properties were repossessed1. The best thing to do is communicate with us early if you are finding it hard to keep up with costs. 

Careful stress tests 

When we send lenders a mortgage application, they check whether your finances will be able to withstand higher interest rates. With rates spiralling again, lenders are testing applicants more stringently to make sure they would cope with interest rates of 8% or 9%. 

Room for manoeuvre 

In difficult economic conditions, existing borrowers are finding new ways to mitigate the higher bills. Examples include extending the term of their mortgage, which can reduce the burden now but will ultimately result in more being paid back in total. First-time buyers are seeing their plans change too. Options to navigate the rising rates include putting down a larger deposit or buying a smaller property. 

Job security and protection are key 

A positive economic indicator has been the jobs market, which has remained resilient throughout the past year. Lenders say the most common reasons for people falling behind on mortgage payments generally involve life-changing events such as a job loss or serious illness, highlighting the importance of protection policies such as income protection or critical illness cover. 

Unpredictable rates 

According to the Bank of England, one million people will see their mortgage bill rise by more than £500 a month by the end of 2026. As has always been the case, however, mortgage rates fluctuate in relation to other economic factors. For example, rates offered by many big lenders fell significantly in August after official inflation figures came in lower than expected. 

And above all else… 

Keep calm and call us. 

1UK Finance, 2023 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments 

News in Review

“It’s great to see financial services firms reporting another positive quarter”

Financial services activity held relatively firm in the third quarter, according to the latest Financial Services Survey released last week by the Confederation of British Industry (CBI).

In total, optimism and business volumes grew slightly less quickly than in the buoyant second quarter. Moreover, following a 27% uplift in Q3, firms now predict business volume growth at a faster pace next quarter (+41%). Optimism among firms (+20%) remains considerably higher than the long-run average (+3%).

Louise Hellem, CBI Chief Economist, commented, “It’s great to see financial services firms reporting another positive quarter, with optimism and volume growth both firm, and activity expected to pick up further in the months ahead. A critically important sector to the UK economy, financial services also serve as a key catalyst and backer for a wealth of business activity across the country.”

Twice as many US jobs as predicted

The number of US jobs surged more than expected last month, figures released by the Labor Department have revealed, with employers adding some 336,000 jobs in September. Additionally, the August tally was also revised upwards from 187,000 to 227,000 jobs.

The surge was led by leisure and hospitality, which alone accounted for 96,000 jobs in September; other top-performing sectors included food services and bars, which rose by 61,000 over the month. After almost doubling analysts’ estimates of 170,000 new jobs, speculation that interest rates could rise further has been rife.

Unemployment stayed unchanged at 3.8%. Likewise, monthly wage growth remained moderate, with average hourly earnings rising by 4.2% in the year to September.

Private buyers steering clear of electric cars

Sales of new electric cars to private buyers fell sharply in September compared with the same period a year ago, figures released last week by the Society of Motor Manufacturers and Traders (SMMT) revealed.

According to the SMMT, sales to private buyers fell by 14%, even though overall registrations of electric cars rose by almost 19%, driven by company fleet buyers. Overall, new car registrations grew by 21% last month compared with the same period in 2022, a fourteenth consecutive month of growth.

National debt interest at 20-year high

The interest the government pays on national debt has soared to a 20-year high, as the rate on 30-year bonds increased to 5.05%. The UK’s national debt is currently estimated at £2.59trn; a higher cost of servicing this debt could influence the government’s spending plans ahead of the Autumn Statement, which is due to be delivered on 22 November.

Taxes at £40bn a year by 2028

Frozen personal tax thresholds will see taxpayers pay £40bn a year by 2028, new analysis from the Resolution Foundation estimates. With Income Tax and National Insurance thresholds scheduled to remain frozen until 2028 and inflation pushing wages higher, the research suggests that taxpayers could face the biggest tax rise in at least 50 years.

Millions of people will be pulled into a higher tax band or see a greater proportion of their salaries taxed, according to the Resolution Foundation, which has called the frozen thresholds a ‘stealth tax’. In response, a spokesperson for HM Treasury said that taxes were lower than elsewhere in Europe ‘despite the difficult decisions we’ve had to make to restore public finances after the dual shocks of the pandemic and Putin’s illegal invasion of Ukraine’.

Northern leg of HS2 scrapped

The Conservative party conference closed last week, with confirmation that the northern leg of the HS2 high speed rail link would be scrapped. After announcing the Birmingham to Manchester leg of HS2 would not go ahead, Prime Minister Rishi Sunak pledged billions of pounds to transport projects around the country, “Every region outside of London will receive the same or more government investment than they would have done under HS2, with quicker results.”

Middle East scare pushes oil price up
On Monday, Brent Crude oil prices climbed by $2.50 a barrel amid concerns that an escalation of conflict in Israel and Gaza could disrupt output from the Middle East. The Middle Eastern region accounts for almost a third of global supply, although Israel and Palestinian territories are themselves oil producers.

Here to help

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

All details are correct at time of writing (11 October 2023)

Mortgage Charter provides relief 

A helping hand for mortgage holders was announced at the start of August by Chancellor Jeremy Hunt with a view to providing support to residential mortgage customers suffering from rising interest rates. 

Three-part plan 

The Mortgage Charter has three key elements: 

  1. Anyone can talk to their bank or mortgage lender for information and support, and this will have no impact on their credit score 
  1. People can choose to swap to an interest-only mortgage or extend their mortgage term, with the option to switch back to their original mortgage deal within six months with ‘no questions asked’ and no impact on their credit score 
  1. Customers won’t be forced to have their homes repossessed within 12 months of their first missed payment. 

More flexible 

Further flexibility relates to customers approaching the end of a fixed-rate deal. 

Under the new Mortgage Charter, customers will be able to lock in a deal up to six months ahead and still apply for any better deals that are available right up to the start of their new term. 

Affordability checks will be waived for those switching to a new mortgage deal if they are up to date with their payments when their fixed term ends. 

“Comfort for the anxious” 

In the Foreword to the Charter, Jeremy Hunt commented, “These measures should offer comfort to those who are anxious about high interest rates and support for those who do get into difficulty. As we have consistently shown through the pandemic, and the consequences of the war in Ukraine, we will always be on the side of households.” 

Nikhil Rathi, Chief Executive of the Financial Conduct Authority said, “This Charter builds on the work we and lenders have done over recent years to ensure those who get into difficulty receive the support they need. The additional commitments from signatories provides customers with clarity and certainty on how they can expect to be treated.” 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments 

Your long-term financial goals

After more than a decade of putting up with paltry savings rates, the sharp increase in rates over the past two years has certainly brought considerable cheer to savers. However, while the rise is certainly welcome, it is important savers do not overly rely on cash savings but carry on investing if they are to maximise returns and achieve their long-term financial goals. 

Think holistically 

Although the availability of higher rates has provided a boost to cash savings, assessing the appropriate amount to hold in rainy-day funds is always difficult, particularly given recent cost-of-living pressures. However, history suggests holding too much money in cash can hold back your future wealth, as returns on both bonds and equities have a better long-term record in terms of outpacing inflation. 

Time in the market 

History also suggests long periods out of the market increase investors’ chances of underperforming. This is because, while cash rates may look attractive, knowing when to sell and buy back into the market is extremely difficult if not impossible, particularly when markets are volatile. The best approach is therefore usually to stay in the market and build a portfolio capable of capitalising on any improved outlook in order to maximise potential long-term gains. 

Don’t be intimidated 

Another reason why some people might shy away from investing is because they feel overawed. Indeed, a recent survey1 found that half of the UK population admits to being intimidated by investing, with more respondents saying it would be easier to learn a new language than start investing. On a more positive note, however, other research2 recently showed growth in the uptake of regulated financial advice, with 4.4 million UK adults seeking advice in 2022, up from 3.8 million two years earlier. 

Here to help 

And of course, we’re always here for you; so, if you need any advice get in touch and we’ll help you build an investment strategy focused squarely on your future dreams and aspirations. 

1Lloyds Bank, July 2023 

2FCA, July 2023 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.