Are you up to date with your financial facts?
The industry is full to the brim with facts and statistics. I have spent a little bit of time distilling the information into digestible chunks- after all, we are busy people and all the emails we receive can leave your head spinning!
The latest Money Statistics report highlights the significant financial pressures facing UK households. The cost of housing is a major burden, with median monthly private rents reaching £1,293 across the UK and £2,070 in London as of April 2024. Despite rising house prices, the number of property completions aided by the Help to Buy ISA was over 592,000 (in the seven years to December 2023).
According to the report, personal debt levels remain high at £1,843.9 billion collectively, with the average household owing £64,296 including mortgages. However, mortgage interest rates were a relatively modest 3.51% in March 2024. Rent inflation is a concern, with private rental prices increasing by 8.9% in the 12 months to April 2024.
Overall, the financial landscape remains challenging for many households grappling with the cost of living crisis.
Rightmove Update for May showed new listings consistently above last year – 10-20%. May saw 4,500 new properties on the market showing that supply is strong and stock levels marginally under 2019’s numbers. Regionally they are seeing a fairly even split. In regards to property types 4 bed plus were missing from the market last year, but this year 4 bed plus is now the most active group in 2024.
There is significant change in market dynamics, showing demand is up between 10 – 20% up on last year in most areas and well ahead of where we were in 2019. The demand we’re seeing this year is seeing more committed purchases and sales agreed.
Rightmove reports that sales have exceeded expectation with only the East of England seeing a decrease (Which is an 0.8% drop). There has been an increase in asking prices year on year with record asking prices expected in May. Similarly, asking price reductions have decreased from 1 in 5 to 1 in 3. In summary, Q1 into Q2 saw an increase in activity and demand which has resulted in more sales being agreed which in turn has increased asking prices creating strong projections for the second half of the year.
However, there are differing views on any decrease in rates, and we’ll have to wait and see if there’s any effect following the General Election.
Let’s finish on a positive note, we’re seeing inflation fell from 2.3% to 2% in May and The Bank of England held the bank rate at 5.25%.
Read more from our lenders and providers below and remember to register your CPD time
And did you know?…..We are on Spotify!
Listen to our latest Podcasts from all areas from Lending, Protection and to Later life lending. These podcasts are free and available to you while you work and travel so click on the link and follow us for more updates!
Latest News
Get in touch
Anita White
Head of Lender Relationships
Exciting developments are unfolding in the Later Life Lending arena
In a recent article for the Financial Reporter, I explore the idea that the traditional “property rich, cash poor” Equity Release customer is evolving, making way for a new generation of borrowers.
With social shifts, higher housing costs, and stagnant wages, more people are purchasing homes later in life. As a result, being mortgage-free at retirement is no longer a guarantee. Many now expect to work longer and carry mortgage debt past their golden years.
In response, lenders are innovating, blurring the lines between residential and later life products. Alongside Lifetime Mortgages, options like higher LTV loans extending beyond retirement age, retirement interest-only mortgages, and payment lifetime plans are emerging to meet the changing needs of older borrowers.
This evolution presents advisers with an enticing opportunity to expand into the flourishing later life market. However, with the 2023 Consumer Duty rules raising advice standards, providing comprehensive, whole-of-market guidance is paramount. For those venturing into this space, being with an established Network can offer invaluable support. We have access to extensive product panels, training resources, and specialist expertise which can help settle you into Later Life Lending advisory.
To learn more about capitalising on this growing market potential and see how we support your journey, explore the full details. Embracing change could reinvigorate your business while better serving your clients’ evolving needs.
And did you know?…..We are on Spotify!
Listen to our latest Podcasts from all areas from Lending, Protection and to Later life lending. These podcasts are free and available to you while you work and travel so click on the link and follow us for more updates!
Latest News
Get in touch
Victoria Clark
Head of Equity Release
Income Protection Task Force: Revamped website!
Exciting news from the IPTF! Back in early May, they mentioned a major refresh for the IPTF website. The first (scaled-back) glimpse of the revamped site was launched 15 June. The IPTF are committed to making their new site a top-notch ‘IP go to’ educational resource for Advisers and all their members. To achieve this, they need your invaluable input. They are asking you to send us the latest and greatest in the following areas:
- Tools – such as calculators
- Sales Aids for adviser use
- Sales Aids for consumers
- Your latest Claims Stats
- Links to Academy’s and learning sites
But don’t stop there! If you have other resources or information that you think would benefit our adviser and wider community, it would be gratefully received.
They are aiming to have everything updated by August 1, just in time for the surge in web traffic they anticipate around IPAW. Your contributions are crucial to making this site the best it can be.
For any questions or further assistance, reach out at info@iptf.co.uk.
Latest News
Get in touch
Amanda Wilson
Company Director
Last chance to join us on our PMI summit & Gala dinner!
Next week you will have the opportunity of seeing the team at our exciting event; Our Private Medical Insurance Annual Conference is taking place on Wednesday 3rd July at Nuthurst Grange Country House Hotel.
The day will run from 10.00am until 3.00pm and will include a mixture of keynote presentations, interactive roundtable sessions and Q&A sessions. There will also be several exhibitor stands for you to explore. Come along and find out more about the healthcare products on offer, their USPs and reasons to use one provider over another. You will also pick up sales tips that you can implement straight away!
The evening black tie dinner event includes, awards to celebrate our wonderful advisers, a delicious three course meal and DJ that will give you a chance to dance into the night; all within the lovely grounds of Nuthurst Grange Country House Hotel.
Please note that spaces are now limited, so this is your last chance to book.
Shout out corner:
A big congratulations to Jessica Knight from The Protection Parent for obtaining PMI CAS. We know it isn’t easy but it is oh-so worth it! Wishing you all the best in your PMI journey!
Coffee Mornings:
Coffee Morning Session recorded on 05th June 2024. A fun-filled session with two very passionate Providers; Bupa SME and WPA covering a range of topics. Join Melissa from Bupa SME as she introduces us to Jaaq, a mental health platform which have partnered with Bupa SME as part of their product offering. And off the back of the recent Product training from WPA, hear how Irina discusses more about their organisation and their USP’s and why they are different in the market. Thank you to all the advisers who always keep the sessions fun and informative with their interaction and questions!
If you missed it we have links to our recorded sessions which will earn you CPD time:
PMI Coffee Morning June Catch up.
Key Links:
Dedicated section for PMI advisers
PMI Adviser only Forum Hit ‘subscribe’ in the top right hand corner to keep up with all our latest topics.
Key Dates:
24th July
10:00-11:00 SME Product Training
11:00-12:00 Consumer Product Training
Latest News
Get in touch
Bipin Sandhu
PMI Supervision & Development Manager
Your vital role as advisers
As advisers, you know the current cost of living crisis is making clients question whether general insurance is truly essential. But you also understand just how devastating the consequences can be for those households going uninsured.
Despite the financial squeeze, an alarming number of UK homes still don’t have contents cover in place. Without it, they’re just one incident away from potential ruin. Insurers paid out millions for home insurance claims last year – proving just how vital that safety net is.
The largest buildings and contents claims reached staggering figures that could bankrupt many uninsured households. Could any of your clients realistically afford those levels of loss out of their own pockets? Highly unlikely during this crisis.
While premiums are an unavoidable expense, you know they pale in comparison to the financial devastation an uninsured loss can cause. An escape of water, fire, or theft could wipe out years of hard work and saving for those unprotected – especially at a time when every penny counts.
As advisers, it’s your role to hammer home the true value of comprehensive GI coverage. Remind clients that a little outlay now is insignificant compared to the potential liabilities they could face. With your guidance, you can ensure they’re not leaving themselves and their assets exposed.
See our latest news and earn your CPD.
Latest News
Get in touch
Amy Wilson
Head of General Insurance (PMI and GI)
