News in Review

“We have a chance now to do the same for the 21st century” 

A trade deal between the UK and US could be agreed “very quickly,” President Donald Trump said at a White House press conference with Prime Minister Keir Starmer.  

The President suggested the UK may avoid the tariffs imposed on other trading partners, raising hopes of a favourable agreement. The Prime Minister presented President Trump with a formal invitation from King Charles for a second state visit, which Trump called a “great honour,” praising the King as a “wonderful man.”  

The Prime Minister signalled that artificial intelligence presented a great opportunity for both countries, saying, “Instead of over-regulating these new technologies, we’re seizing the opportunities that they offer. We’ve decided today to go further to begin work on a new economic deal with advanced technology at its core. Look, our two nations together shaped the great technological innovations of the last century. We have a chance now to do the same for the 21st century.” 

Later in the week, after a tense meeting with Trump, Ukraine President Volodymyr Zelenskyy visited London and Starmer announced a four-step plan to guarantee peace in Ukraine, saying Europe must do the “heavy lifting.”  

On Tuesday, an announcement came from the Trump administration that delivery of all US military aid to Ukraine was to be suspended. Later on Tuesday during his first address to Congress since returning to power, Trump said he received a letter earlier in the day from Mr Zelenskyy, saying he was ready to sign a proposed critical minerals deal between the two nations. 

UK house prices hold steady in February  
House prices rose 3.9% year-on-year in February, slightly below January’s 4.1% increase, according to Nationwide. Prices also edged up 0.4% month-on-month, marking a sixth consecutive monthly gain. 

Despite affordability pressures, the housing market remains resilient. Sales transactions in late 2024 were up 14% on the previous year, though still 6% below pre-pandemic levels. First-time buyer activity continued to recover, with mortgage completions just 5% lower than in 2019, despite higher interest rates. Cash buyers remained strong, with transactions now exceeding pre-pandemic levels. 

FTSE 100 ends February at record high  
The FTSE 100 closed at an all-time high of 8,809.74 at the end of the month, shrugging off market jitters over Donald Trump’s latest tariff threats. The pound also remained strong, posting its best month against the dollar since September. 

Brent crude dropped below $73 a barrel. Markets were unsettled after Trump brought forward 25%    tariffs on Mexico and Canada and doubled tariffs on Chinese goods.  

UK car production slumps amid “perfect storm” 
Car production in the UK fell by nearly 18% in January as the sector faces weakening demand, global trade uncertainty and delays in new model rollouts. Factories produced 71,104 cars and 6,908 commercial vehicles, down almost 16,800 units from last year, according to the Society of Motor Manufacturers and Traders (SMMT). 

SMMT Chief Executive Mike Hawes warned of a “perfect storm” of challenges, making the transition to electric vehicles harder. The downturn has already triggered job losses, with Aston Martin cutting 5% of its workforce and BMW pausing a £600m upgrade to its Mini plant in Oxford. 

Government backs Gatwick’s second runway pending noise reduction measures 
The government has given provisional approval for Gatwick Airport’s second runway, provided noise reduction measures are included. Transport Secretary Heidi Alexander was “minded to approve” the £2.2bn project, though planning permission is still required. 

Gatwick plans to reposition its northern runway, currently used for taxiing, to make it operational by the end of the decade. If approved, construction could start immediately, funded through private                investment. The expansion faces opposition from MPs, local authorities and residents, with a final       decision expected in October after further consultation. Gatwick Chief Executive Stewart Wingate       welcomed the announcement, saying the government had provided a “clear pathway to full approval.” 

Retail sales slump continues as sentiment remains low 
Retail sales fell for the fifth month in a row in February, with a sharper decline expected in March, according to the CBI Distributive Trades Survey.  
 
Retailers remain pessimistic, cutting jobs and scaling back investment at the steepest rate since 2019. Sales for the time of year were weaker than usual, and overall confidence remains low. The downturn has also hit wholesale and motor trades, with total distribution sales falling sharply. While the pace of decline may ease slightly in March, businesses remain cautious as tough market conditions continue. 

 
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 (5 March 2025) 

Narrowing the gender protection gap

You’ve probably heard about the gender pay gap. You may even have heard about the gender pension gap. But did you know there is also a gender protection gap? 

Women are typically less likely than men to have insurance that protects them financially against the risk of being unable to work due to illness or injury. In fact, just 11% of female workers have, or are applying for, income protection insurance in the UK, versus 16% of men, according to research1. Women are also more likely to cancel an insurance policy because they can no longer afford it. 

And, according to Scottish Widows2, even women who do have protection insurance are covered for up to 20% less than their male counterparts. 

Where does the gap come from?  

There are a few reasons why women might be less likely to take out protection insurance, Scottish Widows found: 

  • Women typically have less self-confidence when making financial decisions, with 31% of females saying they were confused by financial matters, vs 20% of males 
  • 22% of women without protection said they don’t understand financial protection or don’t know enough to get the right cover 
  • 22% of females without protection felt it was too expensive. 

Closing the gap 

If a lack of confidence or knowledge is preventing you from taking out protection insurance, or you are unsure whether or not you can afford it, please talk to us. We’re here to help our clients, both men and women, to access suitable, affordable protection insurance and increase their financial resilience. 

1The Exeter, 2Scottish Widows, 2024 

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. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. 

A reminder of recent property tax changes

The Autumn Budget made the headlines with a host of announcements, mostly on taxation. Housing did not play a large part in the key fiscal event, but there are a few points to be aware of. 

Second homes 

From 31 October 2024, people buying a second home pay an extra 2% of the entire property cost in Stamp Duty. The 3% rate, in addition to standard residential rates, rose to 5%. 

Stamp Duty for FTBs 

FTBs will only continue to benefit from a raised Stamp Duty threshold until 31 March 2025, meaning no Stamp Duty applies on properties costing up to £425,000. From 1 April 2025, FTBs will need to pay Stamp Duty of 5% on the portion of the property between £300,000 to £500,000. 

Property investors 

Capital Gains Tax (CGT) is charged on the sale of assets, including second homes. The lower and higher main rates of CGT increased to 18% and 24% respectively for disposals made on or after 30 October 2024. 

Affordable Housing 

During the Budget, £500m of new funding was announced for affordable housing as part of a package worth £5bn to deliver 33,000 new homes, boost supply and support small housebuilders. Several sites across the country have been earmarked for development. The government is also hoping to increase the supply of affordable housing by reducing Right to Buy discounts on council homes. 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it. 

Economic Review February 2025

Growth stronger than expected in late 2024 

Data released last month by the Office for National Statistics (ONS) revealed that the UK economy unexpectedly grew in the final three months of last year, although more recent survey evidence still points to a sluggish outlook. 

The latest gross domestic product (GDP) statistics showed that economic output rose by 0.1% in the fourth quarter of 2024, after flatlining across the previous three-month period. While the figure still only represents a relatively lacklustre rate of expansion, it was significantly stronger than economists had been expecting, with the consensus forecast in a Reuters poll predicting a 0.1% contraction during the final three months of the year. 

A monthly breakdown showed that the final quarter GDP figure was lifted by a strong performance in December, which saw a 0.4% expansion. This reflected robust service sector growth, with ONS noting that wholesalers, film distributors, pubs and bars all did particularly well, while machinery manufacturers and pharmaceutical companies performed strongly too. In addition, however, it was noted that December’s growth relied on government spending and a potentially temporary build-up in firms’ inventories. 

Data from a recently released economic survey also suggests growth in the first two months of 2025 has been tepid. February’s flash headline growth indicator from the S&P Global/CIPS UK Purchasing Managers’ Index (PMI) dipped to 50.5 from 50.6 in January, leaving the index only marginally above the 50.0 no change threshold, implying the UK economy has seen little growth so far this year. 

S&P Global Market Intelligence’s Chief Business Economist Chris Williamson said, “Early PMI survey data for February indicate that business activity remained largely stalled. While marginal output growth was eked out in February, order books deteriorated at a rate not seen since August 2023 to hint at likely cuts to business activity in the coming months unless demand revives.” 

Interest rates cut; inflation jumps 

Last month, the Bank of England (BoE) sanctioned a further cut in interest rates but said it would be ‘careful’ about future reductions in the face of an expected spike in inflation and global uncertainty.  

Following its latest meeting, which concluded on 5 February, the BoE’s nine-member Monetary Policy Committee (MPC) voted by a 7-2 majority to reduce rates by 0.25 percentage points, taking Bank Rate down to 4.5%. The two dissenting voices both voted for a larger cut of 0.5 percentage points. 

Alongside the rate announcement, the Bank unveiled its latest economic projections, which included a halving of its 2025 growth forecast to 0.75%. The updated outlook also predicts inflation will rise to nearly double the Bank’s 2% target level, peaking at 3.7% in the third quarter of this year and not return to target until the end of 2027. 

Commenting after announcing the MPC’s decision, BoE Governor Andrew Bailey reaffirmed his expectation that rates would continue on a downward trajectory, but added “We will have to judge meeting by meeting, how far and how fast.” Mr Bailey also stressed the need to remain “gradual and careful” when reducing rates further because “we live in an uncertain world and the road ahead will have bumps on it.” 

This bumpy road was vividly highlighted two weeks later when the official inflation statistics were published, with the annual headline rate jumping to 3.0% in January from 2.5% in December. ONS said this higher-than-expected increase was driven by rising food prices, a smaller-than-usual drop in air fares and an increase in private school fees.  

January’s data leaves inflation at a 10-month high with analysts predicting further rises to come. April in particular is likely to see a notable jump, with energy, water and council tax bills all set to rise during that month.   

Markets  

At the end of February, global markets remained under pressure as investors reacted to economic uncertainty, with Trump’s trade policies continuing to weigh on sentiment.  

US stocks fell after the Trump-Zelensky Oval Office exchange on Friday 28 February, before moving higher in the afternoon session. The Dow closed February 1.58% lower on 43,840.91, while the tech-orientated NASDAQ closed February down 3.97% on 18,847.28.  

In the UK, the internationally focused blue-chip FTSE 100 index closed the month on 8,809.74, a gain of 1.57%. At month end the index rose as hopes increased of a potential trade deal between the UK and the US, following a week of crunch talks in Washington. The mid-cap focused FTSE 250 closed February down 2.98% on 20,326.38, while the FTSE AIM closed on 703.83, a loss of 1.99%.  

On the continent, the Euro Stoxx 50 closed February 3.46% higher on 5,463.54. In Japan, the Nikkei 225 ended February on 37,155.50, a monthly loss of 6.11%. 

On the foreign exchanges, the euro closed the month at €1.21 against sterling. The US dollar closed at $1.25 against sterling and at $1.03 against the euro.  

Gold closed February trading around $2,863 a troy ounce, a small monthly gain of 0.44%. At month end, the gold price fell as concerns escalated over Trump’s sweeping tariff strategy and a stronger dollar put pressure on the precious metal. Brent Crude closed the month trading at around $69.91 a barrel, a monthly loss of just over 4.0%, as concerns about the risks posed by tariffs to the global economy and demand for fuel weigh on sentiment. 

Pay growth accelerates; vacancies still falling 

The latest batch of labour market statistics showed that UK wage growth remained strong in late 2024, while surveys suggest companies are planning to cut jobs or recruit fewer people over the coming months. 

Figures published by ONS last month showed that average weekly earnings excluding bonuses rose at an annual rate of 5.9% across the final quarter of last year. This figure was up from 5.6% in the previous three-month period and represents the strongest reading since the three months to April 2024. 

The data release also revealed yet another decline in the overall number of job vacancies. In total, ONS said there were 9,000 fewer vacancies reported between November and January 2025, the 31st consecutive monthly fall. And survey evidence suggests this decline is likely to continue as firms look to cut headcounts and freeze hiring as a result of higher employment costs associated with changes announced in the Autumn Budget. 

A Chartered Institute of Personnel and Development survey released last month, for instance, found that around one in three firms are planning to reduce their headcount through redundancies or by recruiting fewer workers ahead of April’s National Insurance contributions hike and the uplift in the minimum wage. 

Retail sales grew strongly in January 

Official retail sales statistics released last month showed that sales volumes rebounded sharply in the first month of this year, while survey evidence points to a modest pick-up in consumer sentiment during February. 

According to the latest ONS data, retail sales volumes rose by 1.7% in January, a strong bounce back from December’s 0.6% decline. The figure was also higher than all estimates submitted to a Reuters poll of economists which had pointed to growth of just 0.3%. ONS did, however, note that the increase was largely due to strong food sales, with other sectors, such as clothing and household goods, recording a more ‘lacklustre’ performance. 

Encouragingly for the retail sector, data from GfK’s most recent consumer confidence index also reported a modest improvement in consumer sentiment. Overall, February’s headline confidence figure rose to -20 from -22 the previous month, with all five of the survey’s components improving, led by a four-point gain in personal finance expectations. 

Evidence from the latest CBI Distributive Trades Survey, though, found that retailers remain ‘downbeat’ about their future business situation, with the data pointing to a sharp sales downturn in March, partly due to the later timing of Easter compared to last year.  

All details are correct at the time of writing (03 March 2025) 

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

“Getting more money in people’s pockets is my number one mission” 

The latest inflation figures released last Wednesday by the Office for National Statistics showed an unexpected surge, with the headline rate climbing to 3% in January from December’s 2.5%, marking the highest level in nearly a year. This increase surpassed the Bank of England’s (BoE) 2% target and exceeded economists’ forecasts of a rise to 2.8%.  

ONS attributed this uptick to several factors, including higher transport costs, increased food and       non-alcoholic beverage prices, as well as a significant rise in private school fees due to new VAT regulations which resulted in an increase of approximately 13%.  

With inflation now notably above the BoE’s target, the likelihood of imminent interest rate cuts appears to be diminishing, with many market analysts now expecting the BoE will maintain Bank Rate at its current level in its upcoming 20 March meeting, though two rate reductions are still anticipated later in the year. Despite the headline inflation figure, some underlying indicators provided a slightly more optimistic outlook. Services inflation, influenced by wage growth, increased to 5%, which was below the projected 5.2%. Core inflation, excluding volatile food and energy sectors, rose as expected to 3.7% from December’s 3.2%. 

In response to these developments, Chancellor Rachel Reeves acknowledged the challenges posed by the current economic landscape saying, “Getting more money in people’s pockets is my number one mission. Since the election, we’ve seen year-on-year wages after inflation growing at their fastest rate—worth an extra £1,000 a year on average—but I know that millions of families are still struggling to make ends meet. That’s why we’re going further and faster to deliver economic growth. By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kickstart growth, secure well-paid jobs and get more pounds in pockets.”  

UK economy shows limited growth 

UK private sector output showed only a marginal rise in February, according to the latest S&P Global Flash UK PMI Composite Output Index which dipped slightly to 50.5 from January’s 50.6. This marks the slowest pace of growth in two months, with services providing some relief while manufacturing output continued to decline. The Flash UK Services PMI Business Activity Index rose to 51.1, a two-month high, while the Flash UK Manufacturing PMI dropped sharply to 46.4, the lowest in 14 months. 

Retail sales bounce back  

According to figures released by ONS on Friday, UK retail sales volumes rose by 1.7% in January compared to the previous month, marking the first increase since August 2024 and surpassing analysts’ expectations of a 0.3% rise. This growth was primarily driven by a 5.6% surge in food store sales, with more demand from consumers for home-cooked meals. Non-store retailers, including online platforms and market stalls, also experienced a 2.4% increase following a decline in December. However, non-food retailers, such as clothing stores, saw a 1.3% decrease in sales.  

UK manufacturing slumps but optimism grows for recovery 

In the quarter leading up to February 2025, UK manufacturing output volumes declined at a rate consistent with the previous three months, as reported by the Confederation of British Industry (CBI). This downturn affected 16 out of 17 sub-sectors, notably glass & ceramics, building materials and metal manufacturing. Despite this, manufacturers anticipate a modest 8% increase in output over the next three months, a significant improvement from the -19% forecast in January. Total order books saw a slight improvement, moving from -34% in January to -28% in February, yet they remain below the long-term average of -13%. Export orders remained relatively unchanged and below average. CBI’s Lead Economist, Ben Jones commented, “We know much of the innovation and investment necessary to drive economic growth will come from firms across the UK. Tentative signs of optimism in our survey suggest that companies are poised to work with the government to create the right environment for expansion.”  

Energy bills to rise 

Energy regulator Ofgem announced that the new cap in April will push prices up by 6.4%, meaning a household using a typical amount of gas and electricity will see their annual bill rise by £111 a year, or £9.25 a month, taking the total bill to £1,849 a year. Analysts had forecast a 5% rise in prices, before Ofgem’s announcement on Tuesday. 

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 (26 February 2025) 

Residential Property Review – February 2025

The Bank of England cut Bank Rate from 4.75% to 4.5% in early February  Housing market activity in January 2025 was around 13% higher than the same time last year The government has announced new plans to simplify the homebuying process 

Falling Bank Rate offers boost to mortgage holders 

The Bank of England cut Bank Rate from 4.75% to 4.5% at the latest meeting of its Monetary Policy Committee (MPC) in early February,  

Although the 0.25 basis point cut had been widely expected, many mortgage holders will have breathed a sigh of relief. While the MPC voted by a majority 7–2 to reduce Bank Rate to 4.5%, the two dissenting members favoured a larger drop, potentially signalling more cuts to come. Indeed, analysts were already predicting further quarter-point falls throughout 2025. 

Mortgage holders on tracker deals will see an immediate benefit, while those with fixed rates will have to wait until their current deal ends to access lower rates. On the other hand, the move is a blow to those saving for a deposit, with the rates on many Lifetime ISA accounts quick to drop in line with Bank Rate. 

Buyers busy in active housing market 

Housing market activity in January 2025 was around 13% higher than the same time last year, new figures from TwentyCi reveal, with analysts pointing to a favourable landscape for buyers. 

After a strong showing at the end of 2024, momentum has been carried forward into the new year, partly in response to upcoming changes to Stamp Duty Land Tax thresholds in England and Northern Ireland.  

The changes, due in April 2025, could briefly dampen buyers’ enthusiasm, though speculation around a possible relaxation of mortgage regulation has the potential to further amplify buyers’ power, analysts note.  

In the plus £1m market, activity was less frenzied but still a healthy 10% higher than a year ago. Elsewhere, a significant development for landlords and renters continues to edge ever closer, as the Renters’ Rights Bill has now had its second reading in the House of Lords. 

Government plans to shake up homebuying process 

The government has announced new plans to simplify the homebuying process, which it says can speed things up and reduce the risk of fall-throughs. 

The update comes after the government revealed one in three housing transactions currently falls through, at a cost of £400m a year to buyers and sellers. 

Part of the plan involves the digitisation of the homebuying process, which the government believes can improve data sharing between conveyancers, lenders and other parties. Similarly, efforts to address issues with paper-based data will also quicken the process. 

Announcing the plans, Housing and Planning Minister Matthew Pennycook said, “We are streamlining the cumbersome homebuying process so that it is fit for the twenty-first century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through.” 

When is the best time to list a home? 

New research from Rightmove reveals that February and March are the best months to list a home. 

The finding is based on data showing that the chances of a home making it to completion are highest during these months. Almost seven in ten homes listed in February and March have gone on to complete, higher than the success rate at other times of year. 

Moreover, houses listed in February tend to find a buyer more quickly too. At a speedy 51 days, February is the joint fastest month along with January, while March and April are not far behind at 52 days. 

The start of 2025 has already seen a busy period for the housing market. Buyer demand has risen by 8% compared to the same period a year earlier and sales agreed have soared by 15%. 

All details are correct at the time of writing (19 February 2025) 

Commercial Property Market Review – February 2025

According to Rightmove, demand In Q4 2024 for industrial listings was 72% higher than in Q4 2023 The market in Scotland in Q4 was strong with industrial (+41%), office (+12%) and retail (+6%)  The RICS long-term outlook remains positive for the commercial property sector  

Industrial prowess helps commercial demand soar 

Demand for investment in commercial property has soared following recent cuts to Bank Rate, according to Rightmove’s Quarterly Commercial Insights Tracker. 

The continued recovery for the investment sector comes amid falling interest rates, which make opportunities more affordable. 

The industrial sector led the way, with record demand recorded. Specifically, demand for industrial listings was +72% higher than in Q4 2023, while demand within the industrial sector for leasing was +31% against the same measure. 

Likewise, the office sector (+57%) has seen the biggest jump in investment demand compared to the same period the previous year. Demand to lease office space is +11% higher than the same three-month period a year ago, as the UK workforce continues the recent trend of spending more time in the office. 

Strong Scottish demand for commercial property 

Scotland’s commercial property market continued its purple patch in Q4 2024, according to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor, which revealed increased demand from both investors and occupiers. 

Within the sub-sectors, industrial (+41%), office (+12%) and retail (+6%) space all saw increased investor demand in Scotland. Notably, this was the first time since 2015 that investor demand for retail space had grown. 

On the occupier demand side, a net balance of 10% of surveyors in Scotland reported a rise, significantly higher than in the previous quarter. All sub-sectors saw occupier demand jump: industrial space (+18%) prospered, ahead of office (+11%) and retail (+3%). 

Moreover, enhanced activity in Scottish commercial property looks set to extend further into 2025: a net balance of 13% of respondents in Scotland anticipate a rise in rental values over the next quarter. 

Prime office rents keep overall demand steady  

The UK’s commercial property market faltered a little in Q4 2024, figures released by RICS seemed to indicate, even as demand for high-quality sustainable offices remained strong. 

Tenant demand remained steady overall in the final quarter of 2024, with a net balance of zero, data revealed. Retail property recorded negative figures but industrial (+7%) and office (+3%) demand made up for the shortfall. 

Despite a few bumps in the road, the long-term outlook remains positive, the RICS data suggested. With a resilient and competitive prime office sector and strong demand for industrial property, analysts remain confident in the overall direction of travel being positive for the foreseeable future. Notably, demand for prime, quality space continues to rise, with prime office rents (+40%) one of the strongest performers in the latest quarter. 

Green light for new Bishopsgate skyscraper 

The City of London Corporation has given the go-ahead to a 54-storey skyscraper next to London Liverpool Street Station that will provide 1.2 million square metres of office space by 2040. 

The newly approved development at 99 Bishopsgate will be one of the tallest buildings in the Square Mile. As companies continue their attempts to lure employees back to their desks, analysts are signalling strong appetite for well-connected top-tier buildings in London. 

Other upcoming projects in the capital include the 74-storey One Undershaft, the 63-storey 55 Bishopsgate, and the 36-storey 60 Gracechurch Street. The City’s current tallest office building, 22 Bishopsgate, reached full occupancy in January. 

All details are correct at the time of writing (19 February 2025) 

News in Review

“I’m still not satisfied with the level of growth that our economy is achieving” 

The latest UK growth data from the Office for National Statistics (ONS) shows the economy grew by 0.1% in the fourth quarter of last year, exceeding expectations. A Reuters poll of economists had forecast that gross domestic product (GDP) would shrink by 0.1% in the period. 

The main contributor to GDP growth was the service sector, expanding by 0.4% in December, following growth of 0.2% the previous month. Production output grew by 0.5% in December 2024, while construction output fell by 0.2%. 

Despite the small uptick, the economy is still in challenging territory. Chancellor Rachel Reeves commented on the data, “The growth numbers have come in higher than many expected, but I’m still not satisfied with the level of growth that our economy is achieving.” She continued, “I am determined to go further and faster in delivering the economic growth and the improvements in living standards that our country deserves.” 

After the Bank of England reduced growth estimates for the year to just 0.75% from 1.5%, warnings are intensifying that the increase in employers’ National Insurance contributions, combined with the minimum wage increase announced during the Autumn Budget, are likely to result in many businesses cutting jobs and elevating prices. 

Mel Stride, the Shadow Chancellor, said the Autumn Budget is “killing growth” with businesses and working people “already paying for her choices.” 

It is widely anticipated that during the Spring Forecast on 26 March, the Office for Budget Responsibility (OBR) will also reveal downgrades to growth forecasts. 

A “positive near-term outlook” for housing sales 

Although the new UK Residential Survey from the Royal Institution of Chartered Surveyors (RICS) showed that growth in new buyer enquiries and agreed sales both weakened in January, survey respondents are optimistic about sales and house prices in the coming months. The RICS house price balance – which measures the difference between respondents reporting price increases and those noting falls – declined in January to +22 from +26 in December, despite a poll of economists having expected a reading of +27 in January. 

Looking at the regional data, house prices continue to rise across the UK. The North West of England and Northern Ireland are experiencing the most robust growth, while price strength is least robust in the South East, and Yorkshire and the Humber. 

RICS Head of Market Analytics, Tarrant Parsons, commented on the dataset, “Growth in buyer demand lost a bit of momentum through the early part of the year, with this flatter picture likely linked to the turbulence seen across money markets in the first half of January.”  

Looking ahead, Mr. Parsons said, “Respondents continue to envisage a slightly positive near-term outlook for sales activity. This should be further supported by the unwinding of some of the pressures around mortgage interest rates over the past couple of weeks.” 

Economists expect interest rate reductions and the increase in Stamp Duty from April will support the market.  

First-time buyers on the up 

Market analysis from Halifax has highlighted that in 2024 there was a 19% uptick in first-time buyers (FTBs), with 341,068 purchasing a home. The data shows, despite affordability challenges, FTBs make up the largest share of home purchases. Notably, those buying their first home made up over half (54%) of all home purchases made with a mortgage in 2024. The average FTB is aged 33, versus 31 ten years ago. The average deposit is £61,090.  

Wages continue to outpace inflation  

Average wages are continuing to outpace inflation according to official figures released by ONS on Tuesday. Without taking account of inflation, ONS said annual pay growth, excluding bonuses, was 5.9% from October to December 2024. Earnings growth for the private sector was 6.2%, while for the public sector it was 4.7%. 

When taking inflation into account, pay rose by 3.4% between October and December compared with the same period in 2023. 

The data release showed that the UK’s unemployment rate remained unchanged at 4.4%, although ONS has advised that its jobs figures should be treated with caution because of low response rates to its employment survey. 

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 (19 February 2025) 

Money – In other news

One in five UK adults have been scammed in the past year, causing debt and financial strain. 38% of Brits in their 30s and early 40s are relying on their parents’ assets for financial security. There are an estimated 2.8 million missing pension pots in the UK, fuelling demand for the Pension Tracing Service. 

One in five targeted by financial scams 

Research by Citizens Advice reveals that around one in five1 (18%) people in the UK have fallen victim to financial scams, such as fake pensions or investment opportunities, over the past year, affecting an estimated nine million individuals. Among those scammed, 43% had to borrow or increase their debt, 24% turned to family or friends for help and 20% took on extra work. Citizens Advice’s Scams Awareness campaign aims to protect people by highlighting common scams, including fake debt advice, pension fraud, and QR code scams in car parks. 

Reliance on parents’ pensions 

Over a third (38%) of Brits in their 30s and early 40s plan to rely on their parents’ assets to secure their own financial future2. Over half expect an inheritance to be their main source of retirement income, with 19% banking on a boost to their finances when their parents pass away. Worryingly, 30% don’t think they will ever have enough to retire, leading some to anticipate working past retirement age. This reliance on parental financial support continues into adulthood for many. 

Hunt for lost pensions keeps growing 

Lost pensions are again in the spotlight, with new research3 revealing there are an estimated 2.8 million missing pension pots in the UK. As more people hunt for their lost pension money, demand for the Pension Tracing Service (PTS) continues to grow. In total, the PTS has received more than 276,000 calls since January 2019 – and 2024 looks set to be another record breaker, with 31,505 calls from January to May 2024. 

1Citizens Advice, 2Moneyfarm, 3Pensions Policy Institute, 2024 

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. 

Why financial procrastination can harm your health (and your finances)

Financial procrastination – delaying financial tasks – can negatively impact both your finances and health. Signs of financial procrastination include fear of mistakes, lack of confidence, and unclear financial goals. Combat procrastination by setting clear financial goals, seeking expert advice, and taking proactive action. 

We all know that putting things off is all too easy. As the new year rolls around, many will be making resolutions to get organised. Is ending financial procrastination one of your goals? 

What is financial procrastination? 

Broadly speaking, financial procrastination refers to a tendency to delay or avoid financial decisions or tasks. Its impacts range from paying bills late to avoiding getting started on retirement planning. 

In the busy modern world, it’s easy to overlook your financial to-do list. Other causes of financial procrastination include stress and confusion around managing money. Putting off financial tasks can impact more than your money: studies have linked procrastination to negative health outcomes such as depression and anxiety. 

Signs you’re a financial procrastinator  

The first step to fighting financial procrastination is to understand what it looks like. Do you fear making mistakes with money? Does a lack of confidence prevent you from taking control of your finances? Do you have low motivation or self-discipline with money? 

If you’re feeling overwhelmed or confused about your finances, have unclear goals and priorities, or experience strong negative emotions about money, you may be a financial procrastinator. 

Take control of your finances  

Thankfully, combatting financial procrastination can be relatively easy. The key remedy is to talk through your finances and develop a plan to take control. By establishing a series of financial goals and longer-term objectives and taking expert advice, you can make sure financial delays never hold you back again. 

Here to help 

We take an active approach to managing your finances – no procrastination here! Get in touch today for the support and strategy you need to achieve your financial goals – whatever they may be. 

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. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.