“Chancellor says Stamp Duty hike on buy-to-let ‘justified’”

Oct 30, 2024 | Economy

An independent (financial adviser’s) view

My Budget comments, you’ll see, focus on the ‘micro’ rather than the ‘macro’, the parts that will directly affect most of our clients, rather than the ‘invest, invest, invest’ (remember ‘growth, growth, growth’ from a couple of years ago) broad brush, may-or-may-not happen stuff. Will the potholes be filled, will the NHS be saved, will  school buildings  still crumble? Who knows, we can only get on with what we can get on with. One other micro-nail has been hammered into the ‘amateur’ landlord buy-to-let market, with the (further) increased in stamp duty on ‘second homes’. If all those new builds are to be sold, this has to be an important market for them. As interest rates, too, are likely to stay higher for longer – a by-product of the government borrowing more – more tenants’ rights and insulation rules, the rental market, particularly those with mortgages, is still-less attractive and profitable. Getting out of it was already expensive, and at least property-sale CGT hasn’t increased, ping, a positive. But get out of it many still will, great for those of us offering alternative investments, thank you very much. But not great if you’re looking for somewhere affordable to live.

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“Record year for annuity sales driven by advisers”

“Record year for annuity sales driven by advisers”

I was asked this week whether annuities are now ‘a good investment’. They’ve been recommended very rarely in recent years, since ‘pension freedoms’ allowed pretty much unlimited drawdown on pension funds and anything left to be passed on to beneficiaries free of Inheritance Tax.