UK housing costs reached a record £217bn in 2024, according to estate agent Savills. This is a £41.2bn rise over two years and accounts for 60% of the decade’s increase. Mortgaged owner-occupiers paid £110bn in total, with the average annual cost now £12,754, up £2,829 since 2022. The surge was largely driven by a 32% rise in mortgage interest repayments. “Mortgage rates eased last year, but the higher costs incurred by households reflect the number who had come to the end of a fixed-rate deal or moved home,” said Lucian Cook of Savills. Renters faced average increases of £2,195 compared to two years ago. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage

Around 11% of divorcees haven’t remove their ex-partner from their Will, risking their estate going to their ex instead of their intended beneficiaries, according to Legal & General (L&G) research. L&G also says a tenth of divorcees have not updated who should receive their life insurance payout. Meanwhile, only a small number take out new cover after divorce, with 4% buying critical illness insurance and 3% income protection. It’s very important for anyone going through a separation to be fully aware of the financial implications of divorce and to ensure they review other important elements, like their Wills and financial products like protection insurance. Come and talk to us for a review. As with all insurance policies, conditions and exclusions will apply

Buying a home is now significantly cheaper than renting across most of Great Britain, according to research from property website Zoopla. The average monthly mortgage payment for first-time buyers (FTBs)stands at £1,038, which is 20% lower than the average monthly rent of £1,248. This analysis assumes buyers have a 20% deposit, which works out as £50,740 based on the typical FTB home priced at £253,700. In London, where affordability is stretched, deposits tend to be higher, averaging 30%. The regional cost gap Mortgage payments are 24% lower than rents in the North East, the widest gap in the country. Other areas showing large savings for buyers include Glasgow (46% cheaper to buy), Newcastle (34%), and Cardiff (31%). However, in the East of England, it’s still 9% more expensive to buy than rent. In 10% of postal areas, buying costs more, led by Harrogate, where mortgage payments are 15% higher than rents. Despite the current advantage for homeowners, affordability remains a major hurdle for many first-time buyers. Raising a deposit is one of the biggest challenges, with average deposits ranging from £27,700 in the North East to £83,400 in London. Nearly two-thirds of FTBs say they’ve needed help from family to cover the upfront costs. Getting on the ladder remains challenging Tougher mortgage regulations introduced in 2015 are also making it harder to achieve home ownership. Lenders now expect buyers to prove they can manage repayments even if interest rates rise. Many currently use a ‘stress test’ of 8%, well above current mortgage rates, which can push monthly repayments above rental costs, even in areas where buying is typically cheaper. Zoopla’s Executive Director, Richard Donnell, said, “Our renting versus buying analysis is welcome news for would-be first-time buyers looking to buy their first home, having faced steep increases in rents over the last three years.” However, he added, “There remain challenges facing first-time buyers, especially those on average incomes or with small deposits… The more first-time buyers priced out of home ownership, the greater the pressure on the private rental market and rental levels.” Donnell welcomed proposals to review mortgage lending rules, suggesting stress testing rates closer to 6% or 7% would help more people buy without triggering a surge in house prices. “We do not want to return to the loose lending that preceded the global financial crisis,” he said. “But modest changes could ease the way for middle-income renters to become homeowners.” Looking to buy your first home but not sure where to begin? Get in touch, because we’re here to guide you every step of the way. Your home may be repossessed if you do not keep up repayments on your mortgage

The cost of moving home in England has jumped 10.9% over the past year, according to new research from estate agents Yopa. The average mover now faces a total bill of £51,826, with a 15% mortgage deposit costing £43,585, making up the largest share. However, changes to Stamp Duty relief thresholds have also driven costs higher. One year ago, movers paid an average of £1,433 in Stamp Duty, but this rose to £2,028 before 1 April and now stands at £4,528, a 216% year-on-year increase. With a steady rise in property values over 30 years, home ownership is likely to be the largest purchase you’ll make, so it pays to get advice from someone you trust. Your home may be repossessed if you do not keep up repayments on your mortgage

Owners of electrical vehicles (EVs) are advised to check their motor and home insurance policies as they could fall into the double insurance trap. An increasing number of motor insurers are providing cover for EV cables. While this is promising, it could cross over with your home insurance, leaving you in a double insurance trap if you need to make a claim. Some insurers state that they will not make a payout if cover is provided elsewhere, so it’s vital to read the small print of your policy wording and identify any grey areas. Also, about four in 10 products still do not clearly state if cover is provided for EV cables and charging points – if this is the case, you should confirm with your insurer. As with all insurance policies, conditions and exclusions will apply.

Weather-related damage to homes and possessions resulted in UK insurers paying out a record £585m in 2024, according to the Association of British Insurers (ABI). This record-breaking payout came in what was an unusually severe year for the UK, with 12 named storms, the highest since the winter of 2015/16. Claims from flooding, storms, wind and frozen pipes soared, overtaking the previous record set in 2022 by £77m and rising £127m higher than in 2023. Overall property claims also hit new highs, totalling £5.7bn for the year, the largest amount insurers have ever paid out. The last three months of 2024 alone saw home claims due to bad weather reach £146m, the seventh consecutive quarter above £100m. Businesses were also badly hit, with £102m in claims for storm damage and interruptions, up significantly from previous periods. With extreme weather becoming more common, these figures underline the importance of homeowners and businesses having appropriate insurance cover in place. The ABI warns ‘prevention is better than cure’ and says that more action is needed to ensure UK properties are ‘fit for the future and that they are not built in areas prone to climate risk.’ As with all insurance policies, conditions and exclusions will apply

Parents across the UK are increasingly worried about their children’s health and wellbeing, according to research from LV=. Their latest ‘Reaching Resilience’ report suggests two-thirds of parents (67%) fear their child being diagnosed with a serious illness. Concerns about children’s mental health are also rising, now affecting 68% of parents, up slightly from last year. The worries aren’t just health-related, with 62% of working parents fearing the financial consequences if illness or injury prevented them from working. Nearly a third (31%) said they would struggle financially if being diagnosed with a critical illness means losing income. LV=’s report highlights that the average worker in the UK supports three people financially, including children and elderly relatives. Parents are also more likely to worry about the impact of illness or injury on their family’s finances compared to workers without children. Income protection policies provide much-needed reassurance by offering financial support if illness affects parents or their children. Some policies include family-focused cover, giving parents the financial breathing space to focus on caring for a seriously ill child without worrying about bills. As with all insurance policies, conditions and exclusions will apply

A new Learning and Work Institute report suggests just 1% of UK workers looking to return to work after poor health manage to find a job within six months, even though 20% of those considered to be ‘economically inactive’ want to work. According to the report, a combination of inadequate support to return to work, skewed financial incentives and inflexible employers have created a benefits trap. It is calling for changes to financial incentives for ill and disabled people to work and argues against further cuts to benefits. Benefit bill concerns The findings come ahead of government plans to overhaul working-age health and disability benefit which are projected to cost £100bn a year by the end of the decade. Steven Evans, Chief Executive of the Learning and Work Institute, commented in the report, ‘3.5 million people receive incapacity benefits because they are too ill to work, up 37% since the pandemic. Many want to work, but too few are offered help to find work and not enough workplaces offer suitable employment opportunities.” The report suggests spending £450m a year on improving employment support could save £4bn a year in the longer term, in the form of lower benefit payments and higher tax receipts. The Learning and Work Institute proposes several improvements to the benefits system that it believes would help bring 500,000 more people back into work over a ten-year period. The proposals include improving and decoupling financial support, introducing a new ‘Benefits Passport’, inviting more people to regular ‘work support conversations’, expanded employment support and working with employers to offer better opportunities and to support job retention. The importance of income protection The findings highlight how income protection policies can be a valuable safety net for anyone who suffers illness or injury and is unable to return to work quickly. Government support is often insufficient or inflexible, meaning without insurance in place people often struggle financially and lack the tailored support they need to resume employment. Income protection is invaluable as it pays out a regular ‘income’ which can give added financial security for you and your family, as well as giving you time and space to recover fully and be able to return to work. Mortgage payment protection insurance (MPPI) It’s also possible to take out a form of income protection which covers your mortgage repayments if you can’t work due to involuntary redundancy, illness or injury. MPPI can fully cover your monthly repayments as long as they don’t exceed 65% of your gross monthly salary. Most insurers will support you for up to 12 months or until you return to work – whichever is sooner. As with all insurance policies, conditions and exclusions will apply

The UK mortgage market bounced back strongly at the end of 2024, driven by first-time buyers and home movers, according to UK Finance. First-time buyer mortgages rose 16.4% to 334,000 last year, while home movers increased by 14.7% to 288,000. Total home purchases reached 622,000, up 15.6% overall. Lower mortgage rates boosted demand in 2024, especially in the fourth quarter, as buyers rushed to beat the changes to Stamp Duty rules this April. However, remortgage deals fell by 9% to 1.6 million, mainly due to fewer fixed-rate deals expiring. This is likely to change in 2025, with 1.8 million fixed-rate mortgages due to expire. Stricter lending rules introduced from 2014 have made it tougher to secure high loan-to-income mortgages (over 4.5 times salary). As a result, first-time buyers in London now need deposits worth more than 2.5 times their annual income, compared to 1.9 times before 2014. Eric Leenders from UK Finance said, “The strong end to 2024 highlights the resilience of UK households. But affordability remains a challenge, particularly in London. The upcoming regulatory review, expected this spring, could ease lending restrictions and help more people onto and up the housing ladder.” Your home may be repossessed if you do not keep up repayments on your mortgage