Welcome to your monthly update from the Danbro Financial Planning team. We’ve reviewed recent financial news stories and insights to work out what it all means for businesses, homeowners, and investors like you...
In the News…
Before we dive into this month’s stories, let’s take a look at one of the biggest this summer: Labour’s landslide victory in the July 2024 General Election. Last month, we reviewed Labour’s manifesto to decipher what changes their win might mean for UK Personal Finance. With the two month anniversary since the election approaching, stats are in on how the UK Economy has taken to the new government. For the most part, initial market reactions were moderate, seeing negligible changes to the pound, and cautiously positive gains to the FTSE 100 and 250.
This relative stability may be because the result wasn’t particularly surprising given Labour’s strong showing in the pre-election polls, with the result factored into existing market predictions. Still, it could be seen that no news is good news, with gentle yet positive gains indicative of a market relieved of political uncertainty and expecting stability. Had we seen a hung parliament, the picture may have been very different.
Interestingly, stocks that rose on the day of the result announcement included housebuilders such as Persimmon and Vistry, likely on the back of the promises of additional houses made by Labour.
Speaking of property, the UK’s commercial property market showed signs of recovery in the first half of 2024, with volume of deals increasing at a faster rate than other European countries.
In spite of a slight increase in inflation from 2% to 2.2%, August also saw the Bank of England cut interest rates for the first time in 4 years, after it reached a 16 year high of 5.25% in August 2023. The latest change brings it back down to 5%. Consequently, the housing market is reported to have surged, an indication of a confidence boost amongst prospective home buyers in anticipation of a potential downturn in house prices and mortgage rates. Those mortgage holders with variable ‘tracker’ rate mortgages may see decreased payments, and credit card or loan repayments may also drop.
Meanwhile, the results are in for the retirement industry for the first half of 2024, seeing sales of annuities rise by over 50% compared to 2023, which puts them on target to achieve their highest sales in the past decade.
Looking ahead, we previously reported that Labour had committed to not increasing National Insurance, VAT or Income Tax. In a recent interview, Chancellor Rachel Reeves announced the party would be sticking to these pledges, however warned that taxation may be increased in other areas in the Autumn Budget. We’ll be covering the budget as it unfolds later in the year.
Featured Article: Personal Finance Jargon Busting – Things You Should Know
With Pension Awareness and UK Savings Awareness days on the horizon for September, here at Danbro Financial Planning we’ve broken down some of the common jargon in the world of personal finance.
On a Lighter Note…
On 14th August, National Financial Awareness Day took place. An annual event, this day is dedicated to spreading awareness of the importance of financial literacy.
With such a wide range of financial products to choose from, the consumer is faced with a market that while offering exceptional choice and opportunity, can also be overwhelming and confusing. Unfortunately, it can be all too easy for misconceptions or lack of knowledge to cause people to find themselves in financial hardships later in life, or end up with plans and products that they are not suited to.
Financial Awareness Day aims to mitigate this by providing access to easily digestible resources relating to retirement planning, saving, budgeting and so much more, giving individuals a greater understanding of the world of personal finance.
Here at Danbro Financial Planning, we believe that financial literacy can bring clarity and peace of mind. That’s why we encourage you to follow our blog, and book a holistic, no obligation meeting at our cost with one of our financial planners. We’ll listen to your circumstances, understand your ambitions, and get you on the right road to achieving the lifestyle you’ve always wanted.
Disclaimer: The content of this newsletter is for your general information purposes only and does not constitute advice. It is not an offer to purchase or sell any particular asset and it does not contain all of the information which an investor may require in order to make an investment decision. Please obtain professional advice before entering into any new arrangement. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.
Originally Published August 30th 2024
Liam Winstanley
Liam Winstanley is a Chartered Financial Planner and Independent Financial Advisor. He has worked in financial services for well over two decades, specialising in wealth management and financial planning including things like pensions, investments, retirement planning, financial protection and estate plans.
Liam is the Director of Danbro Financial Planning and is passionate about delivering the very highest standards in service, ethics and professionalism within the financial sector.
Away from Danbro, Liam is an avid long-distance runner and also turns out for his local cricket side, Brinscall CC. He lives in Lancashire with his wife and son.
