Discover the value of your entire pension pot now.

Get Pension Audit Sheet
Oaklands Details

0121 355 4455
info@oaklandswealth.com
12A Duke Street
Sutton Coldfield
West Midlands
B72 1RJ

Oaklands Wealth Management Ltd

Not quite as safe as houses – the rising cost of bricks and mortar

House prices rose by around 10% in 2021 – their fastest pace in 15 years – but that is no guarantee of what may come in 2022. Relying on bricks and mortar to boost your finances may no longer be as attractive as it once was.

Not quite as safe as houses – the rising cost of bricks and mortar

Source: Nationwide.

Just as inflation took an unexpected leap in 2021, so too did house prices. According to Nationwide, the average UK home rose in value by 10.4%, while Halifax put the increase at 9.8%. As the graph shows, it was the sharpest rise in house prices since 2004 although, as ever, the UK average figure hid significant regional differences.

At the bottom rung of the property ladder, Halifax says that London prices rose by 4.2% – below inflation – while at the top, Wales saw prices rise by 15.8%. Nevertheless, the average London home still costs more than two and a half times its Welsh counterpart.

Last year’s increase in house prices appears to have been driven by two inter-related factors:

  • The Covid-19 pandemic driven increase in working from home stimulated a desire for more space – inside and out ­– which encouraged many people to move; and
  • Temporary and, it now appears potentially unnecessary, cuts in stamp duty gave a boost to the housing market, with transactions brought forward to gain savings of up to £15,000.

In 2022, there are some obvious headwinds:

  • Interest rates are on the rise, adding to mortgage bills;
  • The pandemic effects, including full-time working from home, look set to wain;
  • There is a looming cost-of-living squeeze, as inflation heads upwards and earnings are hit by tax increases; and
  • 2021’s increases mean property is 10% more expensive than a year ago.

In mid-January 2022, the government added a small additional obstacle by confirming a change to council tax rules on holiday homes. From April 2023, holiday homes will be liable to council tax (rather than the more favourable small business rates regime) unless they are let for at least 70 days during the previous year.

The change – a significant cost increase for some second homeowners – is only the latest in a series of measures over recent years which have increased the tax burden on investment in residential property. The UK public has long had a love affair with bricks and mortar – as testified by a quick perusal of TV listings – but as a personal investment, it is no longer the tax haven it once was.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 00121 368 5624 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).

IMAGINE YOUR PENSION & SAVINGS 100% UNDER CONTROL…
Arrange a chat

Similar articles

OUR INDEPENDENT FINANCIAL ADVISORS

Click to view profileHelen Blackburn IFA Pension Transfer Specialist
Click to view profileNick Hampton Investment Advisor

THINKING OF MOVING FROM YOUR EXISTING ADVISOR?

It’s easy to move on from another advisor.
We’ll handle everything.

All that’s needed is for you to sign some letters of authorisation and we’ll do the rest.

None of your investments will be switched into new funds until you’ve agreed with our recommendations and you’re fully happy with any changes we propose.

Schedule a chat

7 KEY FEATURES OF THE OAKLANDS WEALTH MANAGEMENT SERVICE

British Standard BS 8577 Awarded Service

12 Month Money Back Service Guarantee

Lifetime Cashflow Planning

Risk Adjusted Personal Investment Portfolio

ISO 222222 Certified Financial Advisors

Monthly Fund Analysis

2 Investment Portfolio Reviews Per Year

A WORD FROM OUR CLIENTS...

“I have been using Oaklands’ services since 2007, following my changed financial circumstances from divorce. Helen’s advice and handling of my investment portfolio has enabled me to become more relaxed about my financial situation and to not worry as much as I did in the early days, when handling finances was new to me.”

Lynne Turner

A WORD FROM OUR CLIENTS...

“Following my divorce, Helen took complete control of consolidating all my individual pensions into one product after advising me carefully what she considered the best product for my needs and risk profile. She explained everything clearly in language I understood, and my investment is achieving far greater growth than expected.”

Tracy Miah

A FRIEND FOR YOUR FINANCIAL JOURNEY...

THIS IS NOT A DIY SERVICE – WE TAKE FULL RESPONSIBILITY FOR SETTING UP YOUR PENSIONS AND SAVINGS. FOR LIFE.

No half measures. We don’t set it up then leave you all at sea. We manage your investments ongoing and hold ourselves accountable for steering you through your financial journey.

This phrase came from a client who said that’s exactly what we felt like to him, he said “you are like a friend or good neighbour who’s always got my best interests at heart.”

Whatever the reason you come to us we care. We really care. Like it’s our own money.

Tidying up bit and bobs of pensions and putting them neatly in a pot you have full control over.

Maybe transferring a final salary pension if your objectives are better met with your own pension.

Making sure you get all the tax efficiencies legally available to you to enhance your money.

Pointing the microscope on 3,000+ funds and finding the best ones to secure your retirement.

Get in touch
FEES
FEES
Find out more
OUR TEAM
OUR TEAM
Find out more
CLIENT JOURNEY
CLIENT JOURNEY
Find out more
ACCREDITATIONS
ACCREDITATIONS
Find out more