Quilter

Summer sales and heavy discounting by fashion retailers have led to a 0.3% drop in shop prices in August, the first annual fall since October 2021. Non-food goods, especially clothing and furniture, saw significant price reductions. Our Investment Strategist, Lindsay James: “There are encouraging signs that inflation is coming under control, but this economic recovery is fragile.” Read the full article 👇

Over 3 million pensioners will pay higher taxes due to frozen thresholds, pushing many into higher tax brackets. In this article. our Head of Retirement Policy, Jonathan Greer, provides some handy tips to help those receiving the state pension reduce their overall tax burden. Read more 👇

Labour’s plan to make the mortgage guarantee scheme permanent aims to help 80,000 young people buy homes. However, our recent freedom of information request revealed that only 3.8% of young buyers used the scheme between 2021-2023. Our Financial Planner, Holly Tomlinson: “The lack of take up of the current 95% mortgage guarantee scheme shows that making it permanent under Labour’s proposed ‘Freedom to Buy’ scheme will do little to help those struggling to take their first step onto the property ladder. "Instead, the government should look to improve upon the schemes currently on offer." Read the full article 👇

Thank you to all colleagues who participated in our events celebrating South Asian Heritage Month 🙌 Colleagues in our London and Southampton offices immersed themselves in dance by Bollywood Vibes, enjoyed delicious South Asian tapas, and donned colourful traditional wear. Our Head of Inclusion, Diversity, and Wellbeing, Tosin James-Odukoya: “It's been a pleasure to learn more about South Asian heritage and connect with colleagues of all backgrounds. "This year's theme 'Free to Be Me' highlights the importance of creating an environment where everyone feels they can be themselves, and it was great to have our Chief Risk Officer, Priti Verma, take the lead here. The event was a wonderful celebration of culture, and I hope we continue to do the necessary work to ensure everyone can thrive both within and outside of Quilter.” Finally, a big shout out to our Cultural Diversity Community, who made this happen 👍

Annual house price growth remained at 2.7% in June. The data, based on property completions recorded with the Land Registry, typically has a time-lag of at least two months. Banks, brokers and estate agents have reported an increase in activity more recently, helped by falling inflation and the Bank of England’s interest rate cut earlier this month. Our Financial Planner, Holly Tomlinson: "The market, after three relatively flat months, is beginning to heat up - particularly during what is traditionally a busy summer period for property transactions. "The recent decision by the Bank of England to cut its base rate from 5.25% to 5% is expected to further stimulate the market, although the immediate financial impact on homeowners, especially those with fixed-rate mortgages, may be limited." Read the full article 👇

Older Britons are missing out on an average of £4,000 a year by not claiming Pension Credit. This benefit not only tops up your weekly income but also provides access to additional financial perks such as the winter fuel payment following the recent eligibility changes. Our Head of Retirement Policy, Jonathan Greer: "Linking winter fuel payments to a benefit which appears to have just 60 percent take up has drawn broad consternation. "At present, despite many media and Government awareness campaigns, there are many pensioners who are missing out on claiming pension credits despite being eligible." Read the full article 👇

What might UK interest rates look like in 2025? And how could the recent political change in the UK affect the economy and the markets? Find out from our Investment Strategist, Lindsay James, in this short video 👉 bit.ly/3yqSB7m. The value of investments may go down as well as up and investors may not get back the amount originally invested.

Our recent analysis estimates that by 2028, 20% of under-40s will be dragged into paying higher or additional rate income tax by frozen tax thresholds. But if you are approaching the higher or additional rate tax brackets, there are steps you can take to reduce your taxable income and avoid paying a larger income tax bill, such as increasing your pension contributions. Our tax and financial planning expert, Rachael Griffin: “The majority of people can pay up to £60,000 into their pension each year, which can help you reduce your taxable income considerably. What’s more, you can carry forward unused pension annual allowance for up to three years.” Read the full article 👇

A series of mortgage rate cuts have left many buyers asking whether to lock their mortgage rate in now, or wait for possible further drops. Mortgage experts are cautiously optimistic about where rates are heading - with some lenders already dropping rates below 4%. While fixing now may offer some stability, borrowers must consider their circumstances before locking into a new deal. Our Financial Planner, Holly Tomlinson: "There are signs of optimism within the housing market, for both house prices and mortgage rates, so considering your options and getting your ducks in a row now would be a good idea if you are hoping to sell your home any time soon. "A feeling that rates are going in the right direction will help many people decide to take the leap back into the market, pushing up demand for homes." Read the full article 👇

Pension tax overpayment refunds are now averaging £3,540, an issue which occurs when too much tax is taken from withdrawals from pension pots. It typically happens when a retiree accesses their pension for the first time and pays an emergency rate of tax. Our Head of Retirement Policy, Jonathan Greer, highlights a major flaw within the PAYE system (used in the UK to collect income tax and National Insurance contributions): “It places people on an emergency tax code when they first withdraw from their pension pot, which can present a significant issue for those who were hoping to access their funds quickly.” Read the full article 👇