As we head towards the Easter holidays, here’s your March update from Team DFP. In this month’s edition, we take a look at some of the UK’s fastest growing investment sectors and consider the launch of a new 40-year fixed rate mortgage. Enjoy.
A message from our Director…
“Hello everyone! Firstly, I wanted to thank you for your continued support of our business over the last 12 months during what has been a truly tumultuous, historic and unprecedented period for us all. I for one am looking forward to more ‘normal’ times ahead and once again enjoying the simple things that many of us cherish.
You will see comment in this newsletter regarding ‘ethical and sustainable’ investment. This is an area in which we have carried out a great deal of research this year as a result of rising demand from clients to not just seek out financial return, but also ‘do good’ with their investments.
Historically, this type of approach has not been popular and I have to say I think that was because of negative perception on performance or risk. Our research has shown that this is definitely not the case today, as Companies/funds demonstrating high standards of ethics, governance and sustainability have often outperformed more traditional alternatives. All this begs the question: Why wouldn’t we invest sustainably and in line with our values if we can also make strong returns at the same time?
I’ll leave you to ponder that one for now but thank you once again for your continued custom. Stay safe and have a Happy Easter.
In the news this month…
Despite the ongoing financial fallout from the pandemic, certain sectors are showing their resilience. For instance, 2020 was a ‘record year’ for start-up investment in the British technology industry. According to new figures, the value of UK tech start-ups has doubled in the last three years and, collectively, they’re now worth over £420bn - by far the highest in Europe.
Of course, as we’ve been covering a lot in our monthly updates, another of the fastest growing industries in the UK is green energy. One prominent subdivision of the renewable energy sector is offshore wind. And, earlier this month, WindTech International discussed the massive scale of investment going into offshore wind over the next five years - with over £60bn coming from the private sector alone. Average annual investment in offshore wind projects will top £10bn every year until 2026, while the number of people working - directly and indirectly - in jobs relating to offshore wind could rise from 26,000 to almost 70,000 in that same period.
This comes on the back of the news we brought you last month, regarding the government’s investment into landmark green finance research hubs, as they continue to encourage banks, lenders and insurers to invest in green technologies and clean innovations.
We’re in the midst of a sea change in UK - and global - investment, with the Express labelling it a ‘green investment revolution’. As more UK savers choose to put their money into renewable energy companies, ‘ethical and sustainable investment funds have tripled to £10bn over the past year’, with the total invested in environmental funds surpassing £45bn. And it’s only set to increase, with 37% of investors saying they now save and invest in line with their personal ethics.
Away from investments, and one quick line on mortgages, with the launch of a new 40-year fixed rate mortgage from lenders, Habito. As reported in the Guardian, the firm are set to offer these terms to borrowers with a minimum 10% deposit, with repayment rates dependent on the deposit size and the length of the loan. Such mortgages are popular overseas but have never really taken off in the UK. We’ll watch this one with interest in the coming months.
This month’s featured article…
This month’s featured article focuses on the issue of inheritance tax, and announcements reported last week that the Treasury is cutting the amount of ‘red tape required for people with smaller estates’ in relation to inheritance tax’.
There’s also a clampdown on people who falsely claim to let out second properties as holiday lets in order to pay less tax. Find out more below.
On a lighter note…
Something a little different this month. With the contactless limit increasing and ATM withdrawals tumbling, full wallets can sometimes feel like a thing of the past. So, it was refreshing last week to see the unveiling of a new £50 banknote, celebrating the achievements of wartime hero, Alan Turing.
Personally selected by former Bank of England Governor, Mark Carney, Turing was a celebrated mathematician, developmental biologist, computer science pioneer, and a crucial component of the Allies’ victory in WWII. So, in his honour, his former employers, GCHQ, have created ‘The Turing Challenge’. GCHQ claim it’s their ‘toughest ever puzzle’, which might even have stumped the great man himself. Give it a try and let us know how you get on…