Warm outside? Don’t forget about the LTA freeze

Summer, freedom and (hopefully) sunshine are all well on the way, but not planning for the Lifetime Allowance (LTA) freeze could cast a cloud over your finances.

For the next five years (until April 2026), the pension LTA will be held at its current level of £1,073,100. This means that the amount you can hold in your pension without incurring tax for withdrawals will remain static, even in the face of inflation. As a result, pension savers will likely need to consider other saving options over the next few years in order to avoid a tax bill. Tax is currently payable at 55% on everything over the limit if you take the money as a lump sum, or 25% if you take the money in another way, such as drawdown or through an annuity. As people continue to build up their pensions, the number approaching the LTA will increase as a result of the ‘big freeze’; so, you might wish to consider the various other options available to supplement your retirement savings.

The solution that suits you will be wholly dependent on your personal situation and circumstances. Consideration and planning are therefore important before you select the option that is right for you, particularly in light of the complexity of calculations around pensions and the LTA.

The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

In the news – Home Finance

How does your garden grow?

Since the pandemic hit the UK, Brits have been spending more time in their garden – and spending more on them, too. According to new research1, 58% of respondents to a survey said their garden is now a bigger priority, which has been reflected in their spending. Almost a quarter of respondents (22%) spent more than £600 on their garden last year, compared with 12% in 2019. What’s more, over a quarter (27%) say they intend to spend over £600 in 2021.

The best return on your BTL investment

Buy-to-let (BTL) property can turn a real profit and provide a good income for landlords. Typically, UK BTL investors see a 5% annual return on average from their property – but profit is very much dependent on location. According to research, the top 10 places to invest in a rental property are: Sunderland, Blackburn, Durham, Blackpool, Oldham, Cleveland, Liverpool, Wigan, Bolton and Manchester.

Home moves prompted by nightmare neighbours

While the pandemic has prompted many people to move in search of more space, larger gardens or a more rural lifestyle, other people have less positive reasons for moving. According to a survey2, 28% of those asked why they moved home cited a desire to move away from noisy or messy neighbours. It’s likely that neighbour frustrations annoyed us more than usual last year, due to the amount of time we spent at home.

1Quickmovenow, 2021

2Yes,Homebuyers, 2021

Multi-jobbers take heed

Workers with more than one job, earning lower salaries, are at risk of a poorer retirement, as they miss out on employer pension contributions, a new study has found1.

Under the auto enrolment scheme, employers are required to set up a pension and make contributions on their employees’ behalf, unless an employee decides to opt out. Employees need to earn at least £10,000 a year to be automatically enrolled. This is where the issue faced by multi-jobbers becomes clear, as no matter how much someone earns in total, they are excluded from auto enrolment where the individual job pays less than £10,000 p.a. This has been estimated to affect more than four million people in the UK.

Threshold confusion

Many workers are unaware that providing they have qualifying earnings above £6,240, they can choose to opt into their company’s pension scheme, with the employer legally required to contribute at a rate of 3% of their salary. Those earning under £6,240 can still opt into their company pension, but their employer is not required to contribute.

Worryingly, the study found that around one in 20 multi-jobbers, with at least one job paying under the £10,000 threshold, say they have been refused entry into a company pension by their bosses.

1Scottish Widows, 2021

The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Residential Property Review – July 2021

Building Safety Bill published

Claiming “the biggest changes to building safety in nearly 40 years“, Housing Secretary, Robert Jenrick, said that the Building Safety Bill will set out a clear pathway for the future as to how residential buildings should be constructed and maintained.

The Bill was published on 5 July to set out new and more stringent requirements for residential buildings, following Dame Judith Hackitt’s review of building regulations and fire safety after the Grenfell Tower tragedy in 2017.

New measures include:

  • Identifying people responsible for safety during the design, build and occupation of a high-rise residential building
  • Establishing a Building Safety Regulator to hold to account those who break the rules and are not properly managing building safety risks, including taking enforcement action where needed
  • Giving residents more routes to raise concerns about safety, and mechanisms to ensure their concerns will be heard and taken seriously
  • Extending rights to compensation for substandard workmanship and unacceptable defect
  • Driving a culture change across the industry to enable the design and construction of high-quality, safe homes in the years to come.

Scarcity of new listings

In its latest UK Residential Market Survey, the Royal Institution of Chartered Surveyors (RICS) has indicated that new listings are becoming increasingly scarce.

The RICS Survey points to a continuing excess of demand over supply, with a net balance for new instructions of -34% (down from -24% in May) during June, which is a third consecutive monthly fall in new listings.

Knight Frank has also reported strong demand, with figures showing a ratio of new prospective buyers to new instructions to sell, being 10.4 in June, which is 56% above the five-year average.

James Cleland, Head of Knight Frank’s Country business commented, “Stock is still low but building. There will be a gradual restocking over July and August and good houses will sell well over the summer. It actually feels like we’re moving towards a better place as a rebalancing of the market is underway.“

Property prices in Scotland continue to rise

The property boom is continuing in Scotland – an annual growth figure of 12.1%, in the year to May 2021, has been recorded.

This is the highest increase in house prices in over a decade in Scotland and has occurred without the benefit of the Stamp Duty holiday, which has continued to offer buyers a significant discount elsewhere in the UK, fuelling the growth in house prices.

According to Savills, the average house price in Edinburgh rose to over £300,000 in May, for the first time. John Forsyth, a Director of Savills commented, “The sales market, particularly for family homes, has been very active in the first half of the year. Nearly 80% of the properties we have sold have attracted multiple bidders and premiums of up to 15% to 20% over valuations have been achieved by our Edinburgh city office. Our registered buyer inquiry levels were up 30% in June when compared with June 2019, which has resulted in more competition, particularly for family homes throughout the city.“

Back to top

House Prices Headline statistics

House Price Index (May 2021)* 133.5*

Average House Price £254,624

Monthly Change 0.9%

Annual Change 10.0%

*(Jan 2015 = 100)

  • Average house prices in the UK increased by 10% in the year to May 2021
  • On a non-seasonally adjusted basis, average house prices in the UK decreased by 0.9% between April and May 2021
  • House price growth was strongest in the North West where prices increased by 15.2% in the year to May 2021.

Back to top

House Prices Price change by region

Region   Monthly Change (%) Annual Change (%) Average Price (£)
England   0.4 9.7 £271,434
Northern Ireland
(Quarter 1 – 2021)		 1.1 6.0 £149,178
Scotland 5.4 12.1 £171,448
Wales   0.8 13.3 £184,297
East Midlands -0.2 11.0 £216,077
East of England -1.0 6.9 £310,200
London -0.7 5.2 £497,948
North East 1.4 11.8 £143,129
North West 1.4 15.2 £189,245
South East 1.4 9.1 £350,016
South West -0.6 8.4 £277,603
West Midlands Region 0.8 9.8 £219,793
Yorkshire & The Humber 0.8 10.2 £181,856

Source: The Land Registry
Release date: 14/07/21 Next date release: 18/08/21

Back to top

Average monthly price by property type – May 2021

Property Type Annual Increase
Detached
£391,656		 11.3%
Semi-detached
£242,634		 9.8%
Terraced
£208,810		 11.4%
Flat / maisonette
£215,731		 6.5%

Source: The Land Registry
Release date: 14/07/21

Back to top

Residential market outlook

“The total stock of homes for sale continues to run well below historical norms, and this will underpin pricing. At the same time, it may also constrain potential activity, especially for buyers looking for family houses. Even so, we forecast that this year will be one of the busiest for the housing market since the global financial crisis.“

Grainne Gilmore, Head of Research at Zoopla
Source Zoopla June 2021

Back to top

Contains HM Land Registry data © Crown copyright and database right 2017. This data is licensed under the Open Government Licence v3.0.

All details are correct at the time of writing (20 July 2021)

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 Market Review – July 2021

Moratorium on commercial evictions extended

The government has announced an extension to the moratorium on commercial eviction due to rent arrears until 25 March 2022.

The scheme has been extended to give hospitality businesses and nightclubs, which have operated under restrictions for the entirety of the pandemic, and which came under increasing pressure when the planned 21 June date for lockdown easing was delayed, the breathing space they need to recover from the pandemic and to protect jobs. Housing Secretary Robert Jenrick has also announced that new legislation will be introduced to ringfence unpaid rent accumulated during periods of business closure, with landlords expected to make allowances for ringfenced arrears and to share the financial impact with their tenants.

The purpose of the legislation is to encourage landlords and tenants to work together to come to a mutual agreement about how the rent arrears will be repaid. If an agreement cannot be reached, the new legislation will ensure that the parties arrive at a legally binding agreement via an arbitration process.

In order to protect landlords, however, the government has stipulated that tenants who are able to pay their rent, must do so, and those who are currently unable must start paying as soon as restrictions change or they are given the green light to open.

The ban on statutory demands and winding-up petitions has also been extended for a further three months and will now end on 30 September 2021.

Logistics sector goes from strength to strength

Online retail is a prime contributor to the continued health of the logistics sector, as more warehouse space is needed to house operations and goods for dispatch. Estimates suggest that 37% of all retail sales will be online by 2025, an increase from 20% prior to the pandemic.

The latest ‘Big Shed Briefing’ from Savills, outlines that over the next couple of years, the main issue will be warehouse supply, ‘The availability of construction materials will mean that the pace of delivery for new speculative supply will not be able to keep up with demand.’

From a take-up perspective, over 24m sq. ft of warehouse space has been transacted in H1 2021, setting a new record, a massive 82% in excess of the long-term H1 average of 13.4m sq. ft. Fuelled by online retailers taking more compact parcel delivery type units, demand for premises between 100,000 and 200,000 sq. ft has increased, accounting for 36% of the market, up from 27% last year. With supply plummeting at its quickest pace ever and now totalling 25.08m sq. ft, Savills conclude, ‘This fall in supply means that, at a nationwide level, vacancy now stands at 4.37%, the lowest level since Savills started recording the metric, and a fall of 221 bps in 12 months. Grade A supply now stands at 6.91m sq. ft, again the lowest level we have ever recorded.’

The availability of construction materials will mean that the pace of delivery for new speculative supply will not be able to keep up with demand

Back to top

Commercial property currently for sale in the UK

  • Regions with the highest number of commercial properties for sale currently are South West and North West England
  • Northern Ireland currently has the lowest number of commercial properties for sale (25 properties)
  • There are currently 1,306 commercial properties for sale in London, the average asking price is £1,463,660.

Source: Zoopla, data extracted 20 July 2021

Region No. properties AVG. asking price
London 1,306 £1,463,660
South East England 1,183 £2,130,307
East Midlands 773 £967,639
East of England 728 £648,576
North East England 777 £349,957
North West England 1,433 £425,955
South West England 1,586 £537,683
West Midlands 1,171 £481,475
Yorkshire and The Humber 1,149 £327,864
Isle of Man 50 £461,187
Scotland 1,109 £302,368
Wales 765 £406,194
Northern Ireland 25 £408,205

Back to top

Confidence in London offices

Despite the disruption caused by the pandemic, and some firms looking to reduce their space as firms adopt flexible working on a long-term basis, London’s office market has shown resilience. It has been reported that office property viewings are increasing, and property developers are reporting good demand for modern and environmentally friendly buildings.

Brookfield, Canadian real estate property manager and investment firm, has just completed on a 550,000 sq. ft office purchase in Fenchurch Street, totalling £635m, believed to be the largest City acquisition since the beginning of the pandemic.

With several properties in the capital and part-owner of the Canary Wharf Group, Brookfield were attracted to the purchase of 30 Fenchurch Street because of the transport links, including access to the Elizabeth Line, and strong occupancy levels. Other large lettings this year include PVH Corp agreeing a pre-let in White City and TikTok UK signing for a building in Farringdon.

Managing Partner and Head of European Real Estate at Brookfield, Brad Hyler, commented on the deal, “As a long-term investor in the City of London, we believe the City is an attractive investment market and we are excited to expand our portfolio… London remains the commercial centre of Europe and one of the world’s premier global gateway cities, and as such we see continued robust demand for premium, well-amenitized office space in prime locations with strong sustainability and wellness credentials.”

Head of London office brokerage team, at commercial real estate services and investment firm, CBRE, Rob Madden commented, “As lockdown eases, we are beginning to see a steady bounce back in office take-up, with occupiers typically willing to pay for the best available product in the market in order to win the war for talent.”

All details are correct at the time of writing (20 July 2021)

Back to top

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 current approach to self-isolation is closing down the economy”

During a week which saw the delayed Tokyo Olympics finally get underway, the news agenda on these shores was largely dominated by the so-called ‘pingdemic’. After it was revealed that almost 620,000 alerts were sent to Test and Trace app users in England and Wales during the second week of July, the Confederation of British Industry (CBI) warned that the sharp rise in self-isolations was threatening the economy. CBI Director-General Tony Danker said, “The current approach to self-isolation is closing down the economy rather than opening it up. Businesses have exhausted their contingency plans and are at risk of grinding to a halt in the next few weeks.”

On Thursday evening, the government responded by announcing plans to roll out daily contact testing for supermarket depots and food manufacturers, to prevent up to 10,000 workers having to isolate when ‘pinged’. More critical workers, including police, firefighters and workers in some other industries, have subsequently been added to the daily testing programme. However, on Sunday, CBI Director of Policy John Foster said the exemption list “won’t get us where we need to be” and added, “If we want the economy to stay open, we need a confident but balanced plan. We should bring forward the date from 16 August when those who have been double-jabbed no longer need to self-isolate if they test negative once contacted.” 

UK growth slows down

A closely watched economic survey released on Friday suggests that the ‘pingdemic’ has already begun to impact on business activity levels. The IHS Markit/CIPS flash composite Purchasing Managers’ Index (PMI) fell to 57.7 in July from 62.2 in June, the lowest reading since March and significantly below market expectations. Commenting on the survey’s findings, IHS Markit Chief Business Economist Chris Williamson said, “July saw the UK economy’s recent growth spurt stifled by the rising wave of virus infections, which subdued customer demand, disrupted supply chains and caused widespread staff shortages, and also cast a darkening shadow over the outlook.”

Policymakers feel inflation tide will ebb

July’s PMI data also highlighted intensifying inflationary pressures, with input costs hitting an all-time high and output charges rising at a near-record rate. However, despite the continuing surge in inflation, during the past seven days, two Bank of England policymakers have reaffirmed their view that the current spike in prices is unlikely to persist, and that the central bank should not rush to remove stimulus for the economy.

Last Thursday, Deputy Governor Ben Broadbent said, “While we know it’s going to go further over the next few months, I’m not convinced that the current inflation in retail goods prices should in and of itself mean higher inflation 18 to 24 months ahead.”  On Monday, Gertjan Vlieghe, one of four external members of the Bank’s interest rate setting Monetary Policy Committee, said he felt the recent rise in inflation is likely to prove temporary, adding “I think it will remain appropriate to keep the current monetary stimulus in place for several quarters at least, and probably longer.”

Retail sales growth in June

Last Friday saw publication of the latest official retail sales statistics, which were boosted by strong demand for food and drink as fans watched Euro 2020. According to Office for National Statistics (ONS) data, total sales volumes rose by 0.5% between May and June, with food sales the main driving force behind the growth. ONS said, ‘Feedback from some retailers suggested that sales were positively boosted in June by the start of the Euro 2020 football championship.’  In contrast, overall sales at non-food shops declined, largely due to weak demand for furniture and clothing.

Government debt costs rise

Public sector finance statistics were also published last week and showed that borrowing continues to ease from the mammoth levels witnessed last year. In June, the government borrowed £22.8bn; although this was a fifth lower than the equivalent month’s figure in 2020, it still represents the second-highest June number ever recorded. The data also revealed upward pressure on debt costs, as rising inflation increased the value of index-linked government bonds. As a result, a record £8.7bn was spent on interest payments last month, more than three times the amount paid in June 2020.

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.

News in Review

“With every day that goes by our economy is slowly and cautiously picking itself up off the floor”

Ahead of so-called ‘Freedom Day’ on Monday, Boris Johnson urged people to exercise caution as most restrictions on social contact were lifted in England. With the Prime Minister and Health Secretary currently isolating, and UK daily infections totalling around 50,000, there are warnings that cases will surge over the summer. It was announced this week that some fully vaccinated people in critical roles in England, including NHS and care staff, will be able to continue working even if told to self-isolate.

Last Thursday, in the West Midlands, the Prime Minister set out his post-pandemic vision to level up the UK, outlining  government plans to “rewrite the rulebook” on local devolution, adding “With every day that goes by our economy is slowly and cautiously picking itself up off the floor, businesses are opening their doors… it is the mission of this government to ensure that in so far as COVID has entrenched problems and deepened inequalities – we need now to work double hard to overturn those inequalities… so that everyone everywhere feels the benefits of that recovery and that we build back better across the whole of the UK.”

Global stock markets fell at the start of the week, as fears that soaring infection rates will derail the trajectory of the economic recovery intensified. After the Dow’s worst day of the year so far, global shares stabilised on Tuesday as economic growth concerns eased.

UK job vacancies continue their ascent

Data released from the Office for National Statistics (ONS) last week, shows the UK labour market continues to recover. Despite remaining below pre-pandemic levels, the number of payroll employees increased again in June, totalling 28.9 million, up 356,000 month-on-month. For the first time since the beginning of the pandemic, some UK regions saw payroll numbers rise above pre-pandemic levels, including Northern Ireland, North East England, East Midlands and the North West.

In the three-month period to June, UK job vacancies surpassed pre-pandemic levels, driven by vacancies in the hospitality and retail sectors, with 862,000 jobs available in the three months to the end of June, 77,500 higher than the first three months of 2020.

Director of Economic Statistics at ONS, Darren Morgan, commented, “The labour market is continuing to recover, with the number of employees on payroll up again strongly in June. However, it is still over 200,000 down on pre-pandemic levels, while a large number of workers remain on furlough.”

Small shops face mountain of debt

A new report from veteran retailer Bill Grimsey, highlights how independent high street business debt has quadrupled over the last year, with Britain facing a ‘tsunami’ of shop closures this autumn, unless the government steps in. The report reveals that the UK’s small shopkeepers are grappling with debt of £1.7bn, having survived the pandemic by borrowing and now face the task of paying it back. Grimsey commented, “Our high street independents have experienced a new-found appreciation during lockdown. But they’ve also been forced to take on government-backed loans, which they would not have normally been able to get because their balance sheets wouldn’t allow it. Now they are struggling to manage a mountain of debt and need help.” The report concludes that Britain will not be able to ‘build back better’ unless policymakers choose to look beyond infrastructure investment to ‘equally prioritise small business and strengthen the social fabric of high streets.’  

China’s economic rebound loses momentum

New official figures show that the Chinese economic rebound has started to slow, with economists raising concerns over the recovery of the world’s second largest economy. Failing to hit the economists’ forecasts of 8.1% growth, Chinese GDP increased by 7.9% in Q2 (compared to the same time last year). Despite better-than-expected growth for industrial production and retail sales, shipping firms have been impacted by backlogs in the supply chain which have hampered factory output. Record high commodity prices pushed factory inflation to the highest level in over ten years. The National Bureau of Statistics report outlined, ‘China’s economy sustained a steady recovery with the production and demand picking up’, before going on to caution, ‘The epidemic continues to mutate globally and external instabilities and uncertainties abound.’

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.

A summer of hope and optimism

As lockdown restrictions gradually ease, the public mood appears to be shifting, with a more positive atmosphere returning this summer.

This is unsurprising, as there is much to be positive about in the weeks and months to come. Crowds are set to return to theatres and music venues, the Chelsea Flower Show will be going ahead, and sports fans are excited to be returning to events and fixtures.

A faster than expected recovery

This renewed sense of optimism also extends to the economy, with data for H1 2021 demonstrating a stronger economic performance than previously anticipated. Due to this, it is looking likely that major economies across the globe are on track to return to near pre-pandemic conditions before 2021 is over.

Global economic growth projections strengthened

This improved outlook has caused many internationally renowned forecasting agencies to strengthen their projections for worldwide growth over the past few months. The latest World Economic Situation and Prospects Report published by the UN, for instance, bumped its annual growth forecast up to 5.4% – a significantly higher figure than its previous estimate of 4.7% in January. For the most part, this positivity is reflective of the speedy rollout of vaccination programmes in economies such as the US and China, in addition to increased global trade.

Uneven prospects

However, a vaccine-driven recovery is creating inequalities, with a lack of vaccine availability in some countries threatening a broader global recovery. The UN warned that ‘the economic outlook for the countries in South Asia, sub-Saharan Africa and Latin America and the Caribbean remains fragile and uncertain.’

The future’s bright

While the future is looking much brighter as we advance further into 2021, the UN forecast (and subsequent warnings) highlight the continued impact of the pandemic on economic prospects. That is why taking professional advice continues to be vital to investment success. We can help you take full advantage of any investment opportunities that arise.

The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

‘Staycation nation’ increases value of holiday lets

The UK has become a nation of staycationers, which in turn has caused the price of holiday homes to soar, according to research1.

The purchase price of holiday lets increased by 12% between October 2020 (£387,993 on average) and March 2021 (£435,476 on average), based on holiday home mortgage applications.

Sharp rise in mortgage applications the number of mortgage applications for holiday lets have also risen sharply in the same time period, with March 2021 seeing a third more mortgage applications compared with October 2020.

Staycations – here to stay?

International travel is still restricted, with just a handful of countries on the government’s ‘green’ safe list, meaning that – for now at least – staycations will remain the holiday of choice for the majority of British holidaymakers. So, it’s unsurprising that canny investors are snapping up holiday lets this year.

A survey2 shows that UK destinations remain high on travellers’ lists for 2021, with Cornwall, the Scottish Highlands and Devon among the most sought-after destinations.

Looking to let?

If you’d like to invest in a holiday let and take advantage of the staycation trend, get in touch. We can assist you in finding suitable mortgage finance for your needs.

1Hodge, 2021

2holidaycottages.co.uk, 2020

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

It’s holiday season – but is your home protected?

International travel returned in a limited way on 17 May, while those not going abroad have their pick of the UK’s most beautiful staycation destinations this summer. But whether you’re holidaying at home or abroad, make sure your property is protected.

Many of us have fully embraced the national DIY craze during our year at home, while others have purchased expensive electronics and entertainment systems to while away the hours. If this is you, chances are your buildings and home contents cover may be out of date.

Investing in home improvements

Brits poured their cash into improving their homes during the pandemic, with a report1 revealing homeowners spent £55bn (or £4,035.70 each) on renovating their property between March and July 2020. Two thirds of property owners (66%) did some form of DIY during this period, with 27% doing so with the intention of increasing their home’s value.

So, if you’ve invested in your property or purchased expensive home contents this year, it could pay to check that your cover is still adequate.

Lock up tight

Failing to lock up properly when you go away could invalidate your insurance, even if you do have adequate cover. As well as your doors and windows, make sure that you secure skylights, cat flaps, gates and anything else that could leave your property open to unwelcome guests. Activating your alarm (if you have one) may also be a condition of your insurance.

Away for more than a month?

If so, you might need to take out unoccupied property cover – most home insurance policies will only allow you to leave your property standing vacant for 30 days.

1money.co.uk, 2020

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. You may have to pay an early repayment charge to your existing lender if you remortgage.