Sometimes getting any mortgage deal can be a challenge. When, however, you do have a choice between different options, it’s vital that you choose the right one. Mortgages can be for such large amounts that even a small mistake can make a big difference to your finances. With that in mind, here is what you need to know. There are five main factors you need to consider Once you know these, you can do the sums to work out which deal is best overall for your finances and lifestyle. The five main factors you need to consider are: The type of mortgage you need/want Any features you need/want The interest rate and term The set-up fee Early repayment penalties The type of mortgage you need/want In some instances, this will be determined by the type of purchase you want to make and/or the type of buyer you are. For example, if you want to buy a property to let out, then you will need a buy-to-let mortgage. Assuming you want to buy a residential property, then your first choice is whether to go repayment or interest-only. Keep in mind that if you want an interest-only mortgage, you will need a realistic plan in place to pay off the loan at the end of the term. If you go for a repayment mortgage, then you need to choose between variable-rate or fixed-rate. In principle, the cost of variable-rate mortgages can go up infinitely. Fixed-rate mortgages, by contrast, are guaranteed to cost the same for the length of the term. They may not, however, necessarily work out more affordable overall. Any features you need/want Would you like an offset mortgage where you sacrifice interest on your savings so that you pay less interest on your loan? Would you like the ability to take payment holidays, make overpayments or make withdrawals of money you’ve already paid? Would you like cashback? Make a “shopping list” of features you need and want. Be very clear about which options are needs and which options are wants. Remember, any special features can add to the price of your mortgage. You, therefore, need to decide which ones are really worth the money. The interest rate and term You need to know both the interest rate and the term to compare mortgages fairly. The main reason for this is that the term will determine how long it will be before you need to remortgage (or go on your lender’s standard variable rate). For example, if you take out five mortgages each with a one year term, you will have to pay five sets of fees. If, however, you take out one mortgage with a five-year term, then you will only need to pay one set of fees. That does not necessarily mean that the five-year fix will work out more affordable. You need to do your sums carefully. The set-up fees Some fees are likely to be the same regardless of what lender you use, for example, surveyor’s fees. You should, however, check if the lender charges any fees and factor them into your calculations. What’s more, you need to account for them accurately. Remember, if you incorporate the fee into the mortgage amount, then you will be paying interest on it over the lifetime of the mortgage. This can work out significantly more expensive than just paying it upfront. Early-repayment penalties These might not be deal-breakers but it’s advisable to know them anyway. Life can happen, for better as well as for worse. It’s therefore a good idea to know how much it would cost you to terminate your mortgage early.

It’s common knowledge that first-time buyers are getting older. There are lots of reasons for this. Many of them relate to the fact that people are living longer. Some, however, relate to the difficulties of getting on the property ladder. In particular, first-time buyers often struggle to put together a deposit. The good news is that strategy can help a lot here. The importance of attitude Some of the challenges related to saving are definitely practical. Although first-time buyers are getting older, they are still likely to be relatively young adults. This has two key implications. Firstly they will be at the lower end of their earnings potential. Secondly, they will probably want to make the most of their pre-child years. Both of these points can make it difficult for young adults to focus on saving for anything let alone a deposit. In fact, saving for a deposit can seem like an impossible goal. Young adults may put money into a “deposit fund”. They may, however, find it hard to commit enough to make progress in the sort of timescales they would like. This can set up a bit of a vicious cycle. Young adults don’t make saving for a deposit one of their top priorities. As a result, they don’t make encouraging progress so they lose their motivation to save. They may also be disheartened by seeing how house prices keep increasing faster than their savings. If young adults can be persuaded to prioritise saving for a deposit astutely, they can make a lot of progress with minimal effort and sacrifice. This can help to motivate them to keep going. Family and friends can help a lot here, not necessarily financially, but by giving younger adults the emotional support and encouragement to keep going. Small savings really do add up Probably the key lesson most young adults need to learn is that pennies really do turn into pounds. What’s more, they’ll turn into pounds even faster if you give them a helping hand. This doesn’t have to mean cutting out everything you enjoy. It doesn’t even have to mean significantly cutting back on everything you enjoy. It simply means using your income mindfully. Be very careful with credit Credit is a bit of a double-edged sword, especially for young adults. On the one hand, you need it to build up that all-important credit rating. On the other hand, it can work out very expensive. Access to credit can also tempt you into making purchases you wouldn’t otherwise have bought. This includes impulse purchases and convenience purchases, both of which can severely damage your finances. Get the best deal on everything Do your research before every purchase, including regular ones like food and cleaning products. The first question you need to answer is “Do I really need or want this?”. Even if the answer seems obvious, ask the question anyway. You might surprise yourself. For example, you might be spending your money filling up your trolley on (partly) ready-made foods. With a bit of organisation, however, you could probably make your own instead. That could save you a lot of money. Learn (or relearn) household skills There are definitely times to call in the pros and pay for their skills. There are, however, also times when you can save a lot of money just doing it yourself. Anyone can learn basic cooking, sewing, household management and household maintenance skills. Again, these can save you a lot of money with very little effort. Put your savings to work If you’re a first-time buyer, then probably the most obvious place to keep your deposit is a Lifetime ISA. The advantage of this is, clearly, the fact that the government contributes to your savings. Be aware, however, that there is a penalty for withdrawing savings for any purpose other than buying your first home or funding your retirement. It’s therefore highly advisable to have an emergency fund and/or insurance you can access if necessary. If you can’t do this, or just don’t fancy the Lifetime ISA, then you might want to look into other options such as regular ISAs. These don’t have the bonus you get with the Lifetime ISA but could offer much more flexibility. For investments, we act as introducers only

The end of a calendar year is often a time to reflect on the old year and make plans for the new. It has particular relevance in finance because the start of a new calendar year means the end of a financial year. This can have major implications for tax and hence financial planning in general. With that in mind, now seems like a good time to reflect on buy-to-let as an investment class. Why buy-to-let became popular At a high level, buy-to-let is arguably the safest form of investment there is. People always need somewhere to live. Not everybody can own a house and, even if they can, they may not want to. For example, younger people may prefer the flexibility of renting. Older people may want to divest themselves of property to minimise their estate’s inheritance tax liability. This means that it’s probably safe to assume that there is always going to be some level of demand for rental property. Buy-to-let can also be one of the easiest forms of investment to manage. In fact, investors don’t really have to manage it at all in any practical sense. They can hire a letting agent to take care of the practicalities for them. They can also hire an accountant to deal with the financial aspects of running a buy-to-let property. The potential pitfalls of buy-to-let Investing in buy-to-let, by definition, involves buying property. The cost of property means that investors need to be prepared to commit significant capital before they see any income. In fact, investors may even need to use financing (mortgages) to buy property. If investors miscalculate the returns a property could make, they could find themselves having to swallow a painful loss. If they only hold the property for a short time, it may not appreciate enough in value to cover the transaction costs of buying and selling it. Investors may also find themselves having to deal with problematic tenants. Letting agents will do their best to resolve issues without the involvement of the landlord. At the end of the day, however, if the situation gets really bad, the landlord will have to decide whether or not to pursue legal action. The alternatives to buy-to-let Currently, there are two main alternatives to buy-to-let. These are commercial property, and short-term lets. Here is a quick guide to how they compare to residential buy-to-let. Commercial property The main commercial property market tends to work similarly to the bond market. Investors buy a stake in a commercial property. In return for this stake, they get a guaranteed income for a guaranteed time. At the end of this time, the investor either sells the stake back to the management company or renews it. The advantage of this approach is that the investor gets a guaranteed income (assuming the management company remains in business). The disadvantage is that investors generally do not benefit from any increase in property prices. Short-term lets Short-term lets are classed as commercial property. They are, however, usually discussed separately since they tend to operate differently. The main reason for this is that investors typically buy a whole property rather than just a share of one. This means investors can benefit from increases in property prices. The main advantage of short-term lets is that they have the potential for significant returns. The main disadvantage of short-term lets is that they generally require a lot more work than residential property. Investors should also be aware that the government and/or local authorities may start clamping down hard on short-term lets. They could essentially force investors to move into regular buy-to-let or sell their properties. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE The FCA does not regulate commercial mortgages and we act as introducers for it

Young adults move out of the parental home for a variety of reasons. Often these are to do with study or work. For example, students may want to be near their university. Apprentices may want to be nearer their work. Young adults can be an interesting demographic for landlords. Here are some tips on entering that market. Choose the specific demographics you are interested in At a high level, young adults tend to be categorised as either students or workers. You could, however, potentially niche down further than this. In fact, it might be a good idea to do so if you’re thinking about buying property in an area where there’s a lot of competition. For example, some young adults are single, while others are in couples. Both need accommodation. They may prefer to be on their own or they may prefer to share with friends. They may be open to either option or to sharing an HMO with other people. Some young adults will have service dogs and/or need accessible accommodation. Some will be working and studying. Of these, some will be working and studying from home and others will be going on-site. Others will be doing a combination of both. Each group may have broadly similar needs and wants but there will be differences between them. There are also likely to be differences between their budgets. Pick a location that suits your demographic If you want to focus on students, then you’ll need to have property in a student town. If you're interested in young adult workers, then you’ll need to look for locations that attract them. If you want to keep your options open, then you’ll need to look for student towns that also attract young adult workers. Research the location carefully Once you’ve picked a location, research it thoroughly. Find out everything you can about its property market and the young adults who live in it. In particular, try to answer the following questions. What type of property is in demand in this area? Who, specifically, is interested in it? What type of income do they have? What level of rent could they afford? What are they looking for in a property? You could also research local lettings agencies. At the very least, try to get an idea of the going rate in the area. Decide what type of property interests you If you are interested in letting to students, then you might be interested in purpose-built student accommodation. This is classed as commercial property. It, therefore, operates along different rules from standard buy to let. If, however, you want to stick with standard, residential buy-to-let, then your main choices are houses in single occupation and houses in multiple occupation (HMOs). Both types of property are subject to the standard regulations, laws and bylaws relating to residential lettings. Additionally, HMOs are subject to special licensing requirements. These can vary from one local authority to another. It’s therefore vital to check the rules in place in your local area. Failure to register a property correctly may result in a penalty even if your property is fully compliant with all other rules. Assess properties with your target market in mind Whenever you look at a property, do your best to assess it through the eyes of your target market. Start by looking at the property’s core features. Think about whether they are likely to attract or repel your target demographic. For example, if a property is very energy efficient, you can market it as having low running costs. This could be a major selling point for young adults on a tight budget. Then think about any updates you would need or want to make to attract your target market. This would usually include furnishing it so remember to account for the cost of this. Also, remember to account for the fact that furniture will not last forever. At some point, it will need to be updated. Please get in touch if you wish to discuss mortgages. Your property may be repossessed if you do not keep up repayments on your mortgage.

House price rises don’t have to be followed by falls. In fact, they don’t necessarily have to be interspersed with plateaux. They cannot, however, simply keep storming ahead in defiance of both logic and affordability criteria. This means the UK housing market is arguably long overdue for a cooling-off period. This raises the question of whether it will come in the form of a plateau or price drops. It also raises the question of whether a contraction would be painful or would actually be a benefit overall. Why the UK housing market is due for a cooling-off period When COVID-19 hit the UK, Rishi Sunak, then chancellor, ordered an SDLT (Stamp Duty) holiday. This was originally due to run between the 8th of July 2020 and the 31st of March 2021. It was, however, ultimately extended to the 30th of September 2021 (albeit with a reduction in the discount). This tax break was great news for onward movers and investors. Unfortunately, it meant that the existing SDLT discount for first-time buyers essentially became meaningless. The end of the SDLT holiday saw first-time buyers regain their advantage over onward movers and investors. It also saw the economy get back into gear after COVID-19. Both of these changes helped give fresh strength to the housing market. Realistically, however, neither could be expected to last forever. Firstly, there is a limit on the number of people who need or want to buy or sell (or both) at any point in time. Secondly, the UK is now recognised as being in a cost-of-living crisis. This means that, overall, even people who might want to buy are likely to find it more challenging to do so. Furthermore, lenders are likely to be well aware of this. They will hence take this into account when making lending decisions. Will the cool-off take the form of a plateau or price drops? Currently, this is very hard to assess. Realistically, much is likely to depend on how the economy performs over the next few years. Part of this will depend on actions taken by people in the UK, particularly the government. Part of it, however, will almost certainly depend on global factors. This will include how well the rest of the world recovers after COVID. If the UK’s economy performs at least reasonably well, then there is a good chance the housing market will simply stand its ground until inflation does its work. As long as sellers can afford to pay their mortgages, they will only be forced to move if their personal circumstances change. This could result in a standoff between sellers and buyers with the former mostly holding out for buyers able and willing to meet their price. The exception would be sellers who are forced to move and who therefore are under more pressure to be flexible on price. On the other hand, if the economy does not do well, sellers may be forced to sell. They might also be forced to price their home as attractively as they can to sell it quickly. Even if they’re not, they might be prepared to be flexible in return for a serious offer from a serious buyer. These distressed (or semi-distressed) sales would act to lower overall sales prices. They might therefore put other sellers (and estate agents) under pressure to lower their prices. Would house price drops be entirely bad news? Every change hurts some people and benefits others. House price drops could definitely be bad news for sellers with little to no equity. They could result in homeowners being forced to sell at a loss and still have to pay off their mortgage (or go bankrupt). On the other hand, sellers with plenty of equity might be quite happy to see house prices drop. They will get less for their current property but should pay less for their next one. First-time buyers would probably be delighted to see house prices come down for any reason. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

The introduction of the SDLT (Stamp Duty) holiday sparked a frenzy in the housing market. Realistically, it was only to be expected that the end of the tax break would lead to a slowdown. Just like people, there’s a limit to how long markets can run at maximum speed. The key question, however, is, how much has the market slowed down? In other words, is it still a seller’s market or do buyers now hold the upper hand? Sellers’ markets vs buyers’ markets It can sometimes be very hard to judge whether the UK’s housing market favours buyers or sellers. There are three main reasons for this. Firstly, the UK’s housing market is made up of multiple local markets. In fact, local markets can often be subdivided into micro-markets. Secondly, all sellers and buyers are individuals. That means some will be under more pressure to move than others. Thirdly, there are multiple factors that can influence the general direction of the housing market. Again, the impact of at least some of these factors can, and often do, vary from one place to another. For example, overall employment may be trending upwards but a specific area may just have lost a major employer or vice versa. With all that said, there are still indicators that can suggest the overall direction of the housing market. Here is a quick guide to some of them and how they look at the moment. Inflation Inflation effectively tends to favour sellers because it can make buyers feel under more pressure to move. This could be more psychological than practical (fear of missing out). In many cases, however, there can be a strong practical element to it. A rising tide floats all boats. In the context of the housing market, that means house prices go up across the board. That means buyers either need to buy a smaller property (if that’s possible) or pay more. Paying more requires a bigger deposit and/or a higher loan-to-vehicle ratio. Neither of these is a good prospect for buyers. Inflation can also encourage sellers to become more determined to achieve the maximum, possible sales price themselves. Again, in some cases, this may be a matter of necessity. If a seller is also a buyer, then the same inflationary pressures will apply to them. Interest rates Lower interest rates make it harder to save for deposits but easier to afford mortgages. Even though lenders have to consider the impact of rate increases, those increases would still be coming from a very low base. The deposit is still a relatively small part of the cost of a house, therefore, overall, lower interest rates tend to be beneficial for sellers. By making it easier for people to afford mortgages, lower interest rates can help to increase the pool of potential buyers. This helps to stimulate competition between buyers and hence can push up prices. Again, however, this is something of a double-edged sword in that it applies to sellers who are also buyers. With that said, onward movers who have built up equity in their homes may find it easier to put up a substantial deposit on a new property. The job market It will probably take until early 2023 at least before there is a clear picture of the core health of the UK’s job market. At present, the UK, like many other countries, is still on the rebound from the impact of COVID19. Also, many companies take on extra staff over the festive season. Healthy job markets also tend to benefit sellers as they make it easier for people both to save for deposits and to afford mortgages. The overall picture Right now, the overall picture in the UK is still broadly favouring sellers. It is, however, very possible that will change in the near future if the economy slows down. This could result in a reduction in buyers as people become less willing and/or able to commit to mortgages. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Before 2008, the big choice for homebuyers was between interest-only mortgages and repayment mortgages. Now, it’s between tracker mortgages and fixed-rate mortgages. Both tracker and fixed-rate mortgages can be (and usually are) issued on a repayment basis. There are, however, significant differences in what they can mean for your finances. The basics of trackers vs fixed-rate deals Tracker mortgages are set at a certain percentage above the base rate. Fixed-rate mortgages have a set mortgage rate. Both tracker and fixed-rate mortgages are issued for an agreed term. This is typically (much) shorter than the mortgage amortisation period. For example, a term may last one to five years. A mortgage amortisation period may be twenty to thirty years. After this, borrowers either get a new deal or go onto the lender’s standard variable rate. What this means in practice is that tracker mortgages directly push the risk of interest-rate rises onto the borrower. If interest rates go up, the lender simply increases the borrower’s repayments to compensate. Fixed-rate mortgages push them directly onto the lender. Indirectly, however, they are still pushed back onto the borrower. The reality of fixed-rate mortgages At the end of the day, commercial lenders, by definition, are in business to make money. Part of this means avoiding excessive risk-taking (especially in the light of 2008). They are therefore going to be very careful to avoid setting fixed-rate deals overly low. In other words, they are going to make sure that they have breathing space if interest rates go up. This means that, realistically, borrowers should not expect to get significant protection from interest-rate rises. They should also be clear on the fact that they will not benefit from interest-rate falls. The term “fixed rate” means exactly what it says. At most, they will come out more or less even. They will pay less if rates go up but more if they go down. Realistically, they have to consider the possibility that the lender’s margin of error (or margin of safety), will result in them paying more overall. For some people, this may be an acceptable trade-off. If you’re on a fixed income, then knowing what you’re going to pay from one month to the next can make it much easier to budget. For others, however, paying interest to a lender when you don’t have to is totally unacceptable. It’s a waste of money that the borrower could have used for other purposes, be that work or play. In fact, it could even lead to borrowers spending much more than they needed to on their mortgages. The importance of mortgage terms Like everybody else, lenders find it easier to see into the near future than the distant future. That’s why mortgage terms are generally much shorter than the mortgage amortisation period. Essentially, at the end of each term, the borrower renegotiates their mortgage. On the one hand, this approach creates extra administration for both lenders and borrowers. On the other hand, it also promotes safety for both of them. From a lender’s perspective, it limits their exposure if circumstances change either in the market or for the borrower. From the borrower’s perspective, it means they can leverage the equity they are likely to have built up in their house. This will lower the loan-to-vehicle ratio and hence potentially give them access to better deals. The more borrowers have managed to pay down their mortgage, the better a position they will be in. This is why borrowers on tracker mortgages could end up substantially better off than borrowers on fixed-rate deals. If they manage their finances well, they can pay down their mortgages quicker. This minimises the amount of interest they pay to their lender and, hence, leaves them better off overall.

On the surface, it may seem like the employed and the self-employed deal with two completely different mortgage markets. Actually, the same rules apply to both mortgage markets. They also manifest themselves in much the same way. If you understand this, it becomes much easier to navigate the mortgage market when you’re self-employed. The basics of the mortgage market Ultimately, getting a mortgage boils down to your ability to show a lender that you are both able and willing to pay it back. Lenders assess this by looking at your past and present to see what they can infer about your future. Your past is represented by your credit score. Your present is represented by your deposit, bank statements and proof of income. Your future is inferred from the information you give about your past and present. Another key reality of the mortgage market is that lenders are all individuals. There are some basic rules they all need to follow. There is, however, often a lot of scope for them to exercise their own judgement. This means that your chance of getting a mortgage can depend, at least in part, on where you make your application. What this means in practice What this means in practice is that success in the mortgage market is less about employment status and more about effective preparation. If you’re self-employed, you should be preparing at least three years in advance. The employed may be able to cut this down to a year. Even for the employed, however, longer is better. Here are the main points you need to address. Your credit score There are numerous online articles about the importance of your credit score and how to take care of it. Read them and follow their tips. If you know you have bad credit, then make an active effort to repair it. You may find this process easier if you can get professional help. If you can’t, however, again, there’s plenty of information available online. If you really can’t repair pre-existing issues, then remember that, eventually, time will deal with them for you. It can take multiple years for certain markers to be removed completely. You can, however, work to make these markers less relevant by showing that you are managing your finances well now. Be aware that this strategy is unlikely to yield overnight results. That’s why it’s important to start any repair work as soon as possible. Your deposit There’s probably nothing more that can be said about the importance of having a substantial deposit. Again, these take time to build so give yourself as long as you can to do so. Your bank statements Lenders will typically ask for copies of bank statements as part of your mortgage application. You should be prepared to hand over at least 6 months’ worth of statements. It would be advisable to think about how these would look to a lender. For example, even if you can afford the occasional flutter, you might not want to advertise that fact on your bank statements. Your proof of income There are two factors to consider here. One is explicit and the other is implicit. The explicit factor is the amount of income you can demonstrate you have earned up to the point of your application. The implicit factor is what the lender thinks of your prospects of continuing to earn at least the necessary level of income to be able to afford your mortgage repayments. This is where the situation can get challenging for the self-employed. They need to be able to show that their business model is viable over the long term. For this to happen, the lender has to be willing to listen, objectively, to their explanation. This is why applying for the right product with the right lender can be so important. Applying for the right mortgage product with the right lender Do your own research thoroughly and/or use a mortgage broker. Make sure you only apply for mortgages where you have at least a decent chance of being accepted. For mortgage advice, please get in touch Your home may be repossessed if you do not keep up repayments on your mortgage.

Overall, the housing market in the UK is so strong it is literally a standard figure of speech. Nevertheless, it has been through its rough patches. There are increasing signs that the foreseeable future might be one of them. The case for continued strength The UK must have a general election by January 2025. It’s certainly not out of the question that one will be called early. Even if the government does stick to the schedule, it’s already getting very near to the time for early campaigning to start. That means, realistically, the government is going to be even more motivated than usual to protect the housing market. In fact, the decision to raise the SDLT (Stamp Duty) threshold could arguably be seen as having been made with an election in mind. It’s also worth noting that the UK still has a chronic undersupply of housing both to buy and to rent. This means that it tends to be a seller’s market. Periods of weakness, therefore, are generally due to people being unable to buy rather than unwilling to do so. Right now, the UK’s labour market is still very strong. All things being equal, more people in work means more demand for housing. Some people will be looking to buy themselves. Others will be looking for rental property, hence landlords will be looking for property they can let out to them. The case for weakness There are two key reasons for being cautious about the direction of house prices in the immediate future. Both connect to inflation. The first is the fact that the housing market has enjoyed a spectacular run since the start of the SDLT holiday. The second is that inflation is eating away at the real-world purchasing power of UK adults. What goes up doesn’t necessarily have to come down. Equally, it won’t necessarily keep going up forever, at least not at the same rate. Ever since the chancellor introduced the SLDT holiday, the UK housing market has been forging ahead at full speed. No market can keep going at that rate forever. No matter what the conditions, sometimes markets have to stop for breath. This is generally when they’ve got so far ahead of themselves that they need to give other people time to catch up. Specifically, they need to give potential buyers time to build deposits and grow incomes to afford higher prices. At present, the reality for many working adults is that the high demand for labour is not translating into high wages. The most likely reason for this is that employers simply can’t afford it. In short, therefore, working-age adults can be reasonably confident of being able to get a job but their effective pay could be significantly lower than they would like. Will house prices actually drop? Weakness in the housing market does not necessarily mean that prices will drop. It could simply mean that they’ll stay (more or less) where they are for a while. This would almost certainly be the preferred outcome for the government. It will not want significant house price falls going into an election. On the other hand, it won’t want to create a potential bubble either. House prices standing pat does look like a very real possibility just now. The SDLT holiday encouraged a lot of people to bring forward house purchases (and sales). Most residential buyers intended to stay in their new homes for at least three to five years. That means there’s a good chance many people who bought during the SDLT holiday will still be happy to stay where they are. Likewise, first-time buyers who bought after the end of the SDLT holiday are unlikely to be in any rush to move. It is therefore very possible that the housing market will slow down but that prices will stay firm. Arguably, that would be a decent result for buyers, sellers and real estate professionals alike. Please get in touch if you would like mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage.

The most obvious way to make money from your home is to let out space in it. The most obvious way, however, isn’t always the best one. In fact, it isn’t always even possible. Fewer and fewer people have extra space in their home, especially if they’re working from home. With that in mind, here are some alternative suggestions. Your attic Starting from the top, attics are usually junk rooms. If that sounds like you then it’s time to clean out the junk. If you’re looking to make money, then ideally you’ll sell it. If you can’t do that, then try donating it and claiming gift aid. This can get you a discount on your tax. If you can’t do either of that, clear it out anyway. Once you have the space clear, make sure it’s as well insulated as it can be. Your kitchen Businesses that make foods to sell are very highly regulated. For completeness, this includes pet foods. You can, however, use your own kitchen to give cooking demonstrations and lessons. You can also use it to create social media content related to food and/or drink. If you can build up a decent following, then there are lots of ways you can earn an income from it. For example, you could sell your own products or services. You could refer your followers to other people’s products or services. This might earn you a one-time fee and/or affiliate income. This sector is competitive. That means you should be prepared to work hard to build your following. It is, however, very definitely a viable option. Your bathroom Make the most of your private time by filling in surveys and/or entering free, online competitions. Neither is likely to make you a lot of money but then neither is going to take a lot of effort either. In any case, it’s different from reading and doing crosswords. Your living room Now that COVID restrictions are essentially over, your living room can once again be a place you can have guests. That means you can host parties, specifically sales parties. If you haven’t heard of these, they’re exactly what they sound like. You have a group of people around at your home, run a regular party and then invite them to buy goods and/or services. Sales parties have been around for literally decades. They went out of fashion for a while. At first, this was because of the internet. Then, of course, there was COVID. Now, however, they are well and truly back. There are loads of companies you can partner with. Alternatively, you can sell your own products or services. For completeness, if you do have culinary skills, then this is a great opportunity to showcase them. The laws on selling food don’t apply here because you’re not selling it. You’re giving it away for free. People may or may not then buy something else you are selling. Bedroom Not a spare one, just a regular one. Bedrooms can be great places for growing plants. There’s usually a decent amount of light and they tend to get peace and quiet. In other words, they’re not going to get bumped or have drinks spilt on them the way they can in other parts of the home. Plants really can be the gift that keeps on giving. You take cuttings of them, sell them and then they grow back. Many plant lovers are happy to pay for plants they know have been well looked after and are healthy. If you are really green-fingered, you could try growing more challenging plants that can have a higher value. Spare bedroom For completeness, if you have a spare bedroom then you can make money out of it by letting it out. The Rent-a-Room scheme may be a useful reference. Do, however, think carefully about all the practicalities and legalities of this.

Tempting as the idea may sound, it may be rather impractical to spend all winter indoors.  In fact, you may have to spend much more of it outdoors than you’d ideally like, especially if you have young children or dogs. Make sure your footwear has good grip If you’re a dedicated follower of fashion (or need to look smart for school or work) then look for footwear which has good soles as well as good uppers.  If you’re not so concerned about appearances then a good pair of walking/hiking boots and/or wellingtons can be a great investment in both your comfort and your safety. Quite bluntly, winter in the UK almost inevitably involves some degree of frost and ice and while you may try to avoid it, you’re probably going to have to deal with it to some extent.  Footwear with good grip can do a lot to help keep you upright. Give yourself plenty of time to cross the road Picking up from that point, give yourself plenty of time to get from A to B and, in particular, give yourself plenty of time to get across roads.  Walk, do not run, not even when you think the road is fine and not even when you’re on a crossing.  If you slip and go down on the road, a driver may not see you, not even in the daytime and especially not when it’s dark. Be well lit If you live in an urban area, you should, in theory, be able to rely on street lighting but given how important it is to see and be seen, it can be a very good idea to spend a little money on some personal lights, hi-vis and/or reflective clothing and a good torch, even an LED pocket torch.  That way you are always prepared and don’t have to rely on local-authority lighting. Be careful with strenuous physical activities When you exercise out in the cold, your body has to work not just to do the exercise, but also to keep you warm.  Now, there is some level of crossover here in that the exercise itself may generate some degree of heat, but even so, undertaking strenuous exercise in cold conditions can put a strain on your heart.  This can be bad news even for healthy individuals and people with known cardiovascular issues should take particular care. If you need to perform outdoor tasks, such as clearing snow from a pavement, try to do so when it is as warm as it’s going to be (e.g. in the middle of the day), wrap up warm, go gently, take regular breaks and listen to your body. Take care with alcohol First of all, if you’re going to be drinking, think about how you’re going to get home afterwards.  Secondly, remember that alcohol can stay in your system for quite a while so make sure to give yourself plenty of time to “detox” before doing anything complicated and/or dangerous, especially driving. Consider taking out (extra) insurance The dangers of winter provide a good opportunity to reflect on your insurance cover and whether or not it is (still) appropriate for your needs.  In particular, you might want to think about the cover you have (or don’t have) to protect you in the event of illness or injury, either of which could result in you being unable to work for a period.  Even if you are in paid employment, with work benefits, you may find that these are not as generous as you might have liked and that therefore it would be best to boost them with private cover.

The UK now officially has a new Prime Minister. That means a new Chancellor of the Exchequer and a new, unscheduled, budget. Although it’s being billed as a mini-budget, the new budget has a lot to unpack for anyone interested in the UK’s property market. Here is a quick guide to its key points. Stamp Duty is cut New Chancellor, Kwasi Kwarteng raised the Stamp Duty threshold to £250K for onward movers and £435K for first-time buyers. On the one hand, the move itself has been generally welcomed. On the other hand, the fact that the move is considered impactful clearly highlights the key problem with the UK’s housing market. There is simply not enough housing, especially not at prices regular people can afford. Addressing housing ability has been a stated priority for multiple governments. As is often the case with budgets, there is mixed news on that front. The National Insurance increase is reversed The 1.25% “Health and social care” levy will be reversed as of 6th November. This should leave a lot of working people better off to some extent. Of course, how much of a benefit it will be will depend on how much it impacted people to begin with. In other words, while it should benefit a lot of people, the benefit will probably be uneven. With that said, any measure that leaves people with more disposable income is likely to benefit the property market. Landlords should hopefully be less concerned about the prospect (or reality) of arrears. Prospective buyers will doubtless welcome anything that makes it easier to save for a deposit Income tax cuts are brought forward The previous chancellor Rishi Sunak promised an income tax cut by 2024 (i.e. just in time for the next scheduled election). This has been brought forward to April 2023. In addition to lowering the base rate of tax by 1p in the pound, Kwasi Kwarteng is also abolishing the top rate of tax. This means that the most high earners will pay is 40%, not 45%. How this will affect the property market will depend largely on what people decide to do with this money. Realistically, those on lower incomes may need to put the tax they save towards dealing with everyday bills. These seem likely to go up even further given that the pound has recently weakened against other currencies. Those on higher incomes, by contrast, might be eager to use their savings to improve their overall financial situation. They may be well aware that these cuts could be reversed especially if the next election returns a Labour government. If they have debts, including mortgage debts, they may prioritise paying these off as much as they can. If, on the other hand, they are debt-free (or have debts they can easily manage), they may look to put this extra money to work. This could mean investing in property. It could also mean investing in the stock market (or a combination of both). The government makes some business-friendly tax reforms The headline news for businesses is that the planned increase to Corporation Tax has been scrapped. It will now stay at 19% instead of rising to 25%. This decision will undoubtedly be a welcome relief for businesses. It is, however, worth noting that it only has an impact if businesses actually make profits in the first place. Another move that received a lot of media attention is the lifting of the cap on bankers’ bonuses. It is, however, questionable just how much impact this will have in the real world. By contrast, the repeal of the IR35 reforms seems to have largely gone under the radar. It is, however, likely to be a cause for celebration for contractors and private businesses alike. Anything that makes life easier for businesses is likely to benefit the commercial property market. The benefits are also likely to feed through to the residential ones as more work becomes available for more people. If you’re worried about your mortgage, please get in touch.