Joint mortgages for FTBs

Traditionally, when thinking about joint mortgages, most people picture a married couple. Increasingly, however, friends or siblings are taking out joint mortgages when they buy their first home together. 

Stronger together 

A joint mortgage is the most popular way for first-time buyers (FTBs) to fund their home purchase, with more than six in ten opting for one1. 

Buying with someone else means you can split the costs. Saving enough money to pay the deposit is one of the biggest hurdles for FTBs, with joint mortgages allowing buyers to share the burden. Likewise, monthly payments can be made together and your joint earnings will be used to determine how much you can borrow. 

Joint or common? 

A joint mortgage works the same way as a normal residential mortgage. Lenders usually allow groups of up to four people to apply for a joint mortgage. The big decision is whether to be joint tenants or tenants in common: 

  1. Joint tenants essentially act like a single owner. You all have equal rights in the home, you split the profits equally when selling and, should one borrower die, the others will inherit their share. 
  1. Tenants in common have separate interests in the whole property. This means that you can choose how to split the ownership, with one person, perhaps, paying a bigger deposit in return for a bigger share of the value when sold. 

Do you trust each other? 

Before applying for a joint mortgage with a group of friends, make sure you know the commitment you are taking on. For example, if one person is unable to keep up with payments, the others must cover the full amount. 

1Halifax, 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

“India is going to be one of the most significant countries geopolitically over the next years and decades, and it’s vitally important for the UK to deepen our ties”

The G20 summit concluded in Delhi on Sunday with a joint declaration that denounced using force for territorial gain but fell short of explicitly condemning Russia. Ukraine reacted angrily to the watered-down wording about the war, with foreign ministry spokesperson Oleg Nikolenko saying that the G20 had “nothing to be proud of”.

At the summit, several significant deals were agreed. On Saturday, Prime Minister of India Narendra Modi and President of the European Commission Ursula von der Leyen, announced a new project to build an economic corridor linking Europe with the Middle East and India via rail and sea.

The G20 members also made further ground on climate. The bloc announced a 100% consensus to ‘pursue and encourage efforts to triple renewable energy capacity globally through existing targets and policies’. Meanwhile, the summit launched a global biofuel alliance between India, the US and Brazil to boost the use of cleaner fuels.

The African Union was inducted as a new permanent member, part of an effort by India to make the G20 more inclusive. When Mr Modi closed the summit on Sunday afternoon, he handed a ceremonial gavel to Brazil’s President Luiz Inacio Lula da Silva, who is taking over the presidency.

UK Prime Minister Rishi Sunak had his own mission for the summit: the prospect of finalising a free-trade agreement with India. Before the trip, a spokesperson told reporters that, “As the first British Prime Minister of Indian descent, his visit will be an historic moment.”

Afterwards, Mr Sunak said “What you’ll see in the communique is strong language, highlighting the impact of the war on food prices and food security.” A further round of talks between India and the UK have been scheduled for late September. Mr Sunak added, “Without question, India is going to be one of the most significant countries geopolitically over the next years and decades and it’s vitally important for the UK to deepen our ties, particularly economically and more broadly, with India.”

Autumn Statement date confirmed

Last week, Chancellor of the Exchequer Jeremy Hunt announced that he will present this year’s Autumn Statement to Parliament on 22 November. The government also confirmed that the Office for Budget Responsibility (OBR) has been commissioned to prepare an economic and fiscal forecast that will be presented to Parliament alongside the Autumn Statement, reinstating the practice a year after former Chancellor Kwasi Kwarteng snubbed the OBR forecasts for his ill-fated ‘mini-budget’ in September 2022.

Wage growth outstrips inflation

On Tuesday, Office for National Statistics (ONS) latest employment data revealed that basic wage growth in July outstripped the rate of inflation for the first time in more than 18 months. Up 7.8% compared to the same month a year ago, excluding the effects of bonuses, this was a 22-year high for the figure.

The full ONS report, however, presents a more nuanced picture of employment and wage dynamics.

Between May and July, for example, the UK’s employment rate was estimated at 75.5%, slightly lower than the previous quarter (February to April 2023). Payrolled employees remained largely unchanged in August from the previous month.

Meanwhile, unemployment rose by 0.5% between May and July compared to the previous quarter.

China’s economy stumbles again

Official figures released last week showed that China’s exports have fallen for a fourth consecutive month, amidst weak demand at home and abroad. Exports dropped by 8.8% in August compared with a year earlier and imports fell 7.3%. Despite staying in the red, those declines still surpassed expectations and signalled an improvement on the previous month.

As well as a slump in global demand for Chinese-made goods, the country is facing several post-pandemic challenges at home, including a property crisis and weak consumer spending.

A spokesperson for the Chinese foreign ministry told a regular news briefing on Tuesday that China’s economy had great potential and that the fundamentals of long-term improvement had not changed.

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 (13 September 2023)

Investment myths

To many, the world of investing is shrouded in mystery; the realm of financial whizz-kids and the super-rich. In reality, however, this is not the case and, once myth is separated from reality, it should be clear that investing is actually accessible to all. 

Can’t invest, won’t invest! 

Research1 has highlighted several reasons why people are sometimes reluctant to invest. The main one, cited by 45% of respondents, is because they don’t have sufficient money, while 23% feel they are not knowledgeable enough about investing and 21% are worried about losing money. 

Only for the rich? 

These findings mirror a number of common misconceptions surrounding investing, one of which is that only wealthy people invest. However, while this may have been the case in the past, it is certainly not true nowadays, with investment options available for people with relatively small sums to invest. 

Expertise and devotion required?  

Other common investment myths include the idea that you have to be a stock market genius and monitor your investments on a daily basis. Both of these are untrue: advice is readily available to guide novice investors throughout their investment journey, while taking a long-term approach is always advisable. 

Too risky by far? 

While it is true that all investing involves risk, not all investments are similarly risky. So, anyone who is worried about losing money can take a more cautious approach by holding a greater proportion of less-risky assets in their portfolio. 

Help at hand 

If you’re new to investing then get in touch and we can help get you started. We’ll show you that investing is not just for the very wealthy but it does give everyone a chance to potentially secure a higher return on their hard-earned cash. 

1HSBC, 2022 

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. Think carefully before securing other debts against your home. Equity released from your home will be secured against it. 

Over 50s reconsidering life insurance

Continued high inflation is prompting over 50s to reconsider whether they really need their life insurance policies, research has suggested1, sparking fears of vulnerabilities. 

Cutting costs 

A survey of 1,000 people aged 50+ has shown that 22% of customers are thinking about cancelling their monthly payments as a result of the rising cost of living. Those with fixed incomes, such as retirees, are particularly susceptible to rising prices, the research claims. 

Although cutting back on spending might be a necessary choice, cancelling life insurance policies can end up costing you and your loved ones further down the line. As well as leaving your family without key protection now, if you cancel your policy, it will likely cost you more in future should you choose to take out a new plan. 

Gender imbalance 

Women were more impacted than men, according to the research. Some 20% of women with an over-50s life insurance plan are considering no longer paying, compared with 17% of men. 

Think carefully 

Protection is an essential part of long-term financial planning for everybody. In the short term, rising costs are posing challenges for many. But having the right insurance cover for your unique needs is an indispensable safety net for you and your loved ones. 

Before you cancel your life insurance payments, it is important to think of the wider impacts for your financial commitments. Get in touch. 

1Scottish Friendly, 2023 

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

Your financial empowerment toolkit

Traditionally, people might have assessed their financial health by simply checking the balance on their bank account or totalling their amassed level of wealth. In recent years, however, a different measure has emerged which seeks to balance financial stability with emotional wellbeing. 

Financial empowerment 

This new concept places greater emphasis on goals and developing a financial plan to achieve life’s aspirations; in other words, it’s about people gaining control over their finances rather than their finances controlling them. Achieving genuine financial empowerment does not therefore focus simply on someone’s level of wealth, but on handling that money so it has a truly positive impact on their wellbeing. 

A state of mind 

In many ways, financial empowerment is about understanding the emotional relationship with money by focusing on an individual’s mindset as well as their finances. Taking time to strategise, by aligning spending and savings commitments with long-term goals while being prepared for life’s unexpected financial challenges, can provide a logical, ordered approach that brings satisfaction and pride to our financial lives. In effect, it creates control that affords a sense of financial freedom and thereby puts us on track to a fulfilling, well-lived life and retirement. 

Empowerment versus income  

Analysis1, which compares people’s emotional experiences with their level of empowerment and earnings, offers further valuable insight. It found that financially empowered people had mostly positive experiences, even those in lower income brackets, while those who felt disempowered were generally less happy with their finances than their peers. This suggests that a sense of personal power rather than someone’s income level is the key to achieving emotional wellbeing in their financial lives. 

It’s all in the planning 

Financial empowerment effectively derives from equipping ourselves with the right tools. With the clear, transparent advice and professional support our firm provides, we can construct a well thought-out, long-term but flexible plan that will allow you to live the life you want and thereby achieve true financial empowerment. 

1Morningstar, 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. 

The true value of financial advice today

There are clearly a variety of reasons why people utilise the services of a financial adviser, but among the key motivating factors is undoubtedly the peace of mind professional advice affords to clients. And, in challenging times like these, it is clearly not difficult to understand why that particular benefit is deemed so important. 

Peace of mind 

A recent survey1 sought to ascertain the main reasons why investors seek the expertise of a financial adviser and it found that more than half of those that use one did so for peace of mind. In contrast, just a third said they used an adviser due to their own lack of financial expertise, while less than a fifth did so because of time constraints. 

Soft factors are important 

The research also asked investors which aspects of advice they place most value on, with two-thirds saying investment returns were critical and just over four in ten attributing value to tax management efficiency. Interestingly, however, the study also found that a number of soft factors were equally, if not more, important to investors. For instance, half of respondents said they valued the ability to plan how they will attain their financial goals. 

Support key in difficult times 

The value of support provided by an adviser tends to be accentuated during challenging economic times when clients typically need greater reassurance and the confidence required to maintain a long-term outlook. During such periods, for example, advisers perform a vital role by ensuring clients 

do not fall into the trap of ‘selling low’ or ‘buying high.’ 

Avoiding expensive mistakes 

This latter point perhaps highlights the true value gained from using a financial adviser, which is that it helps clients avoid making costly mistakes. In essence, value therefore seems to stem less from picking the best investments and more from constantly making smart decisions across a range of issues, whether that be: tax, cost or income management, asset allocation, portfolio rebalancing, or withdrawal strategies. 

1Hymans Robertson, 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. 

Economic Review – August 2023

UK growth rate exceeds expectations

The latest gross domestic product (GDP) statistics revealed that the UK economy grew more strongly than expected in June, although more recent survey data does suggest a renewed contraction looks ‘inevitable.’

Official data released last month by the Office for National Statistics (ONS) showed the economy grew by 0.5% in June. This figure was higher than any forecast submitted to a Reuters poll of economists, with the consensus prediction suggesting the economy would expand by just 0.2% across the month.

ONS said that June’s growth partly stemmed from the increased number of working days with the economy bouncing back from May’s extra Bank Holiday for the King’s Coronation. In addition, the warm weather provided a notable boost to trade in pubs and restaurants as well as activity in the construction sector.

June’s stronger than anticipated figure also resulted in the economy expanding across the second quarter as a whole. The increase of 0.2% between April and June again beat economists’ expectations with the consensus forecast from the Reuters poll pointing to a flat reading.

Data from a closely watched survey released towards the end of last month, however, suggests a third-quarter downturn looks increasingly likely. The preliminary headline reading from the S&P Global/CIPS UK Purchasing Managers’ Index fell from 50.8 in July to 47.9 in August. This represents the weakest recorded figure for two and a half years and took the index below the 50 threshold that denotes a contraction in private sector output.

Commenting on the survey’s findings, S&P Global Market Intelligence’s Chief Business Economist Chris Williamson said, “The fight against inflation is carrying a heavy cost in terms of heightened recession risks. A renewed contraction of the economy already looks inevitable, as an increasingly severe manufacturing downturn is accompanied by a further faltering of the service sector’s spring revival.”

Interest rates rise again

Early last month, the Bank of England (BoE) announced a further hike in its benchmark interest rate and warned that rates were likely to remain high for some time.

Following its latest meeting which concluded on 2 August, the BoE’s nine-member Monetary Policy Committee (MPC) voted by a 6-3 majority to raise Bank Rate by 0.25 percentage points. This was the 14th consecutive increase sanctioned by the MPC and took rates to a 15-year high of 5.25%.

Two of the committee’s dissenting voices – Catherine Mann and Jonathan Haskel – voted for a more significant hike, preferring a 0.5 percentage point rise in order to “lean more actively against inflation persistence.” The other dissenting member – Swati Dhingra – again voted for no change, warning that the risks of overtightening “had continued to build.”

Although this difference in opinion shows that individual members of the committee are likely to hold differing views on the future path of interest rates, the minutes to the meeting did stress that further monetary tightening may be required. They concluded, ‘The MPC will ensure that Bank Rate is sufficiently restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term.’

On the day that he announced the decision, BoE Governor Andrew Bailey reiterated that message saying “we might need to raise interest rates again.” The Governor added that it was “far too soon” to speculate about the timing of any cuts and that rates would not fall until there was “solid evidence” that rapid price rises are slowing.

The next MPC meeting is due to conclude on 20 September with the rate announcement scheduled for the following day. A recent Reuters poll found economists now typically expect another quarter-point hike to be sanctioned at that meeting with rates then peaking at 5.5%.

Markets (Data compiled by TOMD)

At the end of August, major global stock markets closed the month in negative territory. European stock markets were mixed on the last trading day of the month, as key central bank policy meetings approached and investors processed regional inflation data.

In the UK, the FTSE 100 closed the month on 7,439.13, a loss of 3.38%. The mid cap focused FTSE 250 closed down 2.81% on 18,605.70, while the FTSE AIM closed August on 741.93, a loss during the month of 2.98%.

Across the pond, investors are awaiting the next batch of US employment data, which will provide a key indicator on the health of the economy and the impact of the Federal Reserve’s rate tightening measures. The Dow Jones Index closed the month down 2.36% on 34,721.91, while the tech-heavy NASDAQ closed the month down 2.17% on 14,034.97.

In Japan, the Nikkei 225 finished the month on 32,619.34, down 1.67%.On the continent, the Euro Stoxx 50 closed August on 4,297.11, a loss of 3.90%.

On the foreign exchanges, the euro closed the month at €1.16 against sterling. The US dollar closed at $1.26 against sterling and at $1.08 against the euro.

Tightening physical supplies are supporting oil prices. Brent crude closed August trading at around $86, a gain over the month of 1.04%. Gold closed the month trading at around $1,942 a troy ounce, a monthly loss of around 1.44%.

Headline inflation rate declines

Official consumer price statistics have revealed a further fall in the UK headline rate of inflation, although the latest data also showed fresh signs of stickiness in terms of core inflation.

Figures released last month by ONS showed that the Consumer Prices Index (CPI) 12-month rate – which compares prices in the current month with the same period a year earlier – stood at 6.8% in July. While this was sharply lower than the previous month’s figure of 7.9%, the drop was exactly in line with forecasts.

ONS noted that falling gas and electricity prices had largely driven the decline as a change to the energy price cap came into force. Price rises for some staple food items including milk, butter, bread, eggs, cereal and fish also eased, although these dips were partially offset by a further rise in the cost of eating out, as well as a jump in flight, alcohol and tobacco prices.

Core CPI inflation, which excludes volatile elements such as energy, food, alcohol and tobacco, however, failed to fall. July’s figure of 6.9% was unchanged from the previous month and slightly higher than the consensus prediction from the Reuters poll.

Wage growth hits record high

Earnings statistics published last month showed that nominal wage growth rose at a record rate in the three months to June, although more recent survey data does suggest pay deals may have started to cool.

According to the latest ONS figures, average weekly earnings excluding bonuses rose at an annual rate of 7.8% in the April to June period. This represents the strongest growth rate since comparable records began in 2001 and was significantly higher than the 7.4% rise predicted in a poll of economists.

Commenting on the data, ONS Director of Economic Statistics Darren Morgan noted that wage growth is still not outstripping the pace of price rises. However, Mr Morgan did say that the latest figures show that real pay levels are now “recovering.”

The BoE has been closely monitoring wage growth for inflationary signs and the latest figures will undoubtedly have caused concern. Survey evidence, however, does point to a more recent slowdown – data from Adzuna, for example, shows average advertised salaries fell by 0.15% between June and July, while XpertHR figures show the median basic pay settlement in the three months to July dropped to 5.7% following six consecutive quarters at a record 6%.

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.

All details are correct at the time of writing (1 September 2023).

News in Review

“The fight against inflation is carrying a heavy cost in terms of heightened recession risks”

Early S&P Global/CIPS UK Purchasing Managers’ Index (PMI) survey data for August has highlighted that weaker household spending and increasing interest rates contributed towards a decline in demand for both services and goods during the month.

The key business survey, monitoring economic measures including orders and employment, showed the output index fell more steeply than analysts expected, reducing from 50.8 in July to 47.9 in August, the first reading under 50 (indicating a contraction in output) since January. This contraction brings to a close a six-month period of economic expansion and marks the fastest rate of decline in over two and a half years (since January 2021).

A clear toll has been taken on the manufacturing sector with its PMI index contracting to a 39-month low of 42.5. Meanwhile the services index reduced to a seven-month low of 48.7.

Chief Business Economist at S&P Global Market Intelligence, Chris Williamson, commented that the data suggests inflation “should moderate further in the months ahead, but also indicates that the fight against inflation is carrying a heavy cost in terms of heightened recession risks… A renewed contraction of the economy already looks inevitable, as an increasingly severe manufacturing downturn is accompanied by a further faltering of the service sector’s spring revival. The survey is indicative of GDP declining by 0.2% over the third quarter so far.”

We await further UK GDP data releases in the coming weeks.

Consumer confidence

The latest consumer confidence index from GfK, measuring people’s perception of economic prospects and their personal finances, has shown a rise of confidence during August, aided by the combination of accelerating wage growth and moderating energy prices. Making up most of the ground lost last month and returning to similar levels last seen at the beginning of 2023, the August figure (five point rise to minus 25) was stronger than the small uplift to minus 29 forecast by a poll of economists.

Jackson Hole news

The annual Jackson Hole Economic Symposium took place in Wyoming on 24-26 August, with central bankers, policymakers and economists descending from around the globe. Federal Reserve Chairman Jerome Powell delivered a keynote speech, during which he said the central bank may need to continue raising interest rates to complete the job of lowering inflation on a sustained basis.

Also in attendance, Christine Lagarde, European Central Bank (ECB) President, was talking about how global central banks are operating in an uncertain environment, adding that in order to lower inflation to target in the eurozone, policy makers will have to set interest rates as high as needed and leave them there for as long as necessary.

She commented, “Policymaking in an age of shifts and breaks requires an open mind and a willingness to adjust our analytical frameworks in real time to new developments. At the same time, in this era of uncertainty, it is even more important that central banks provide a nominal anchor for the economy and ensure price stability in line with their respective mandates.” 

Energy bill reductions

Last week, Ofgem the energy regulator, announced a reduction in the energy price cap in Q4, meaning a dual-fuel annual energy bill for a household using a typical amount of electricity and gas is set to temper to £1,923 in October, saving households an average of £151 versus Q3, representing a £577 reduction on last winter. Prices remain high by historical standards, with analysts suggesting that prices could rise again in Q1 2024.

Jonathan Brearley, Chief Executive of Ofgem commented, “We know people are struggling with the wider cost of living challenges and I can’t offer any certainty that things will ease this winter… There are signs that the financial outlook for suppliers is stabilising… this means there should be no excuses for suppliers not to be doing all they can to support their customers this winter.”

By the winter, Ofgem is intending to introduce a consumer code of conduct outlining clear expectations regarding supplier behaviours, particularly targeted at the most vulnerable customers.

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 (30 August 2023)

IHT goes mainstream

Inheritance Tax (IHT) receipts have been consistently rising, with new data from HM Revenue & Customs (HMRC) showing takings for the 2022-23 tax year totalled £7.1bn, up a massive £1bn from the previous tax year (£6.1bn 2021-22). According to HMRC, this huge uplift can be attributed in part to ‘a combination of the recent rises in asset values and the government’s decision to maintain the IHT nil rate band thresholds at their 2020 to 2021 levels up to and including 2025 to 2026.’ 

Reported estimates from the Spring Budget detail that over the next five years, IHT is expected to bring in £38bn for the Treasury, meaning annual receipts will exceed £8bn by 2027-28, with 6.7% of deaths expected to trigger an IHT charge. This compares with 3.76% of UK deaths in 2019-20. 

Record receipts have prompted suggestions that the tax has now become mainstream. Previously dubbed a tax on the wealthy, this is certainly no longer the case, as frozen thresholds and elevated house prices impact. 

The good news is that through expert planning you can legitimately mitigate this tax, so you can pass on assets to your family as you’d intended. There are various different strategies depending on your unique circumstances, including making gifts during your lifetime, considering placing assets into trust, making use of exemptions, and thinking about leaving something to charity, to name but a few. 

Don’t go it alone 

IHT is a complex tax, with reliefs and exemptions on gifts to consider and the interaction with other taxes. These days, with many more estates likely to be subject to IHT, taking expert advice could save your beneficiaries substantial amounts of tax. Get in touch. 

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. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning. 

Residential Property Review – August 2023 

Demand down but activity remains robust 

The residential sales market experienced further negative indicators in July, according to the latest UK Residential Survey by the Royal Institution of Chartered Surveyors (RICS), with new buyer enquiries and agreed sales volumes continuing their decline. 

At the national level, new buyer enquiries recorded a net balance of -45% in July, little changed from the previous month’s reading of -46%. This was described in the report as ‘symptomatic of a market losing further ground in the face of higher mortgage rates.’  

The headline new instructions net balance dropped to -13% in July (compared to -3% in June). Agreed sales slipped to a net balance of -44% in July, down from -36% in June. This new figure is the weakest for the agreed sales measure since the early stages of the pandemic. 

Separate data released by HMRC, however, paints a slightly different picture, with the number of completions rising in June to 94,690. At 86% of their 2017-19 average, this figure is up from 77% in May. 

Simon Rubinsohn, RICS Chief Economist, commented, “The recent uptick in mortgage activity looks likely to be reversed over the coming months if the feedback to the latest RICS Residential Survey is anything to go by.” 

Commercial hotspots for conversion 

Almost 28,000 sites across England have the potential to be converted into residential properties, according to new data released from Searchland, with the combined market value estimated to be over £1.5bn. 

London has roughly a third of England’s sites and an estimated market value in the region of £928m. In a speech in July, Housing Secretary Michael Gove referenced some of the commercial hotspots that are easier to convert into residential accommodation, including shops and restaurants. 

Mitchell Fasanya of Searchland commented, “Disused commercial sites are a cornerstone of the government’s approach to solving the UK’s housing problems […] developers already have the opportunity to turn thousands of commercial properties into residential developments and these sites currently hold significant value in the current market.” 

New-build price premium soars 

 The price of an average new-build property is now 52% higher than for existing homes, according to research by Sourced Franchise. 

 In the last year, price premiums for new-build property have increased by 20% to reach this average uplift of 52%. 

The North East (83%) is home to the strongest new-build price premiums, with Scotland (72%), the East Midlands (66%), the North West (65%), West Midlands (63%) and Wales (62%) next in line. At the other end of the scale, London is home to the smallest new-build house price premium – just 17%. 

Residential Property Review - August 2023

All details are correct at the time of writing (21 August 2023) 

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.