Connect with us

Wealth Management

QUIZ: HOW WELL DO YOU KNOW HOUSE PRICES AROUND THE UK?

New research has found that Brits generally have little knowledge of house prices around the UK, whether that’s in their region or not.

 

The study[1] from Good Move, the regulated property buyer, asked 2,000 Brits to estimate the average property value in major cities, including their own.

 

It found that Brits are least aware of house prices in London, with the average guess being more than £160,000 less than the actual figure of £472,000.

 

Brits are also unaware of how cheaply properties sell for in Glasgow, Belfast and Nottingham, with the average guesses being over £60,000 higher than reality.

 

Surprisingly, even residents of these cities don’t realise how low house prices are in their areas, with Glaswegians the most inaccurate at guessing their own statistic (£84,000 too high), followed by the people of Nottingham (£56,000 too high). In fact, 60% of cities fare worse than the national average when it comes to guessing house prices in their own region.

 

Good Move has created an online quiz so that people can test their own knowledge of house prices around the UK: https://goodmove.co.uk/blog/how-well-do-you-know-house-prices-uk/

 

The UK cities which Brits least knowledgable about house prices are:

 

CityAverage house price in 2019Estimated house priceDifference between actual and estimated house price
London£472,753£310,908£161,844 (low)
Glasgow£137,970£202,382£64,412 (high)
Belfast£129,451£192,390£62,939 (high)
Nottingham£145,479£205,523£60,044 (high)
Bristol£278,533£220,086£58,447 (low)
Liverpool£136,517£194,841£58,325 (high)
Manchester£179,506£227,131£47,626 (high)
Edinburgh£265,894£225,765£40,129 (low)
Newcastle£166,662£199,081£32,420 (high)
Sheffield£166,916£196,268£29,352 (high)

 

 

 

The research also asked respondents to estimate how much they think UK house prices have changed since the EU referendum.

 

House prices have increased, albeit slower than in previous periods, in every major UK city since the vote in June 2016, with an average growth of over £20,000[2]. Some places, in fact, have even experienced far greater increases, like Edinburgh, where the average property value is now £46,000 higher than it was three years ago.

 

The study revealed that Brits are largely unaware of this trend. Three-quarters (74%) of Brits underestimate this rise in house prices, with nearly a third (32%) believing that house prices have actually fallen in their area since the vote. More than one in eight (13%) think that they have decreased by over £10,000.

 

Across the country, most Brits overestimate how hard Brexit has hit their city’s house prices.

 

In 14 of the 15 cities studied, residents believe that their local house prices have increased by less than they actually have. Only Londoners overestimate the rise in their local property prices, believing that they have increased by nearly £12,000 since 2016, when in fact they have only grown by £4,600.

 

Ross Counsell, director at Good Move, said: “With so much uncertainty around Brexit, it’s perhaps unsurprising that many Brits overestimate its effect on UK house prices. While house price growth has been slowing, it appears Brexit hasn’t had the scale of impact that many believe or assume that it has.

 

“Our research has highlighted that many Brits are unaware of house prices in their area too. It is a good idea to keep tabs on local property values, so you are well-informed if you ever decide to move house.”

 

To test your knowledge of house prices in different UK cities, visit: https://goodmove.co.uk/blog/how-well-do-you-know-house-prices-uk/

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Wealth Management

WHAT TO DO WITH YOUR LIFE SAVINGS, RETIREMENT AND INSURANCE POLICIES WHEN EMIGRATING

Insurance

By Renier Hugo, Alexander Forbes Certified Financial Planner

 

With South Africans increasingly opting to live abroad, a hot topic is the issue of what to do with your life savings, retirement, and insurance policies when emigrating.

New legislation, coming into effect in March 2020, means that South African tax residents living and working abroad will be required to consider whether they should emigrate from South Africa in order to avoid having to potentially account for tax in two countries.

A new term known as “financial emigration” has crept into people’s vocabulary. This is no different from the term “emigration” and the rules which attach when a person takes the steps to emigrate.  One needs to understand the consequences of emigrating to another country on one’s financial products, such as long-term insurance policies, investments and pre-retirement money.

 

Insurance

Renier Hugo

Life cover – You have the option of cancelling your life cover. Depending on the policy of the particular insurer, you might have the right to continue with the cover depending on whether the risk has changed for the insurer. You should take advice on this aspect. If you can it might be worthwhile to keep the current cover especially if you were underwritten when much younger or healthier. Your premiums will still have to be paid from a South African bank account.  Some South African insurers currently sell life insurance that pays out in dollar or pounds; or life policies that pay out in any country abroad. These products may well be worth looking into before emigrating.

 

Disability and Income Protection – Care must be taken here. Assuming the policy can be continued, there may be certain exclusions within the terms and conditions when moving abroad.

 

Retirement Annuities  The usual restrictions of not being allowed to withdraw before age 55, as well as the one third maximum cash lump sum withdrawal, with the rest to buy a pension, does not apply. When officially emigrating, a member of an RA may withdraw the full capital amount.

 

Preservation Funds –  The same applies to members of pension and provident preservation funds – a full withdrawal is allowed upon emigration.

 

Employer pension or provident funds – there is no restriction on withdrawal out of an employer pension or provident fund if a person decides to emigrate before normal retirement age.

 

Unit trusts and shares – regardless of whether you make the financial decision to sell these, there will be a tax consequence on emigrationso it is important to take advice.

 

Living Annuities –  With regards to living annuities, you are unable to withdraw the capital even if you have formally emigrated. The income will continue to be paid out into a South African bank account, and from there the annuitant can choose to transfer it offshore.

Before making the big move abroad it is always wise to consult your financial adviser, as well as a South African emigration specialist who can analyse and give advice on your unique and personal circumstances. One should also obtain tax advice to understand the tax treatment of financial products following emigration.

 

Continue Reading

Wealth Management

THE END OF YEAR TAX CHECKS THAT COULD SAVE YOU THOUSANDS

Tax

Charlie Reading, Founder and MD of Efficient Portfolio

After HMRC’s tax return deadline at the end of January, it can be tempting to drop your guard, believing that your new tax bill is a long way away.

It’s true, you’ve got a whole year until the next bill is due. What most don’t consider, however, is that there is a range of checks that you can do reduce that bill significantly.

Astute investors make use of their tax-free allowances every year and save thousands of pounds in the process. With such massive savings on the line, it’s a strategy to certainly consider.

With that, here are some easy checks and tips from Charlie Reading, Founder and Managing Director of Efficient Portfolio chartered financial planners, that could start you on your way to a much leaner tax bill:

 

Tax

Charlie Reading

1. Maximise Your ISA Allowances

Good returns, flexibility, diversity and tax efficiency should be key components in your financial strategy, and the ISA helps to deliver all of these. Historically, ISAs have been at the cornerstone of tax-efficient saving and are often referred to as one of the essential steps in your strategy, as they can help your wealth grow without you being penalised by heavy tax charges. They are an incredibly useful way of saving, and, as such, it is generally encouraged that people take advantage of their benefits. However, the ISA allowance is offered on a ‘use it or lose it’ basis, so if you fail to maximise it, you can’t make up the funds later on.

Up until 5th April 2020, you can contribute up to £20,000 into an ISA, and a further £20,000 from 6th April 2020, thereby sheltering up to £40,000 per person, as long as you’re over 18.

 

2. Top Up Your Pension While You Still Can

At the time of writing, the highest level of State Pension you can receive is £129.20 a week, which is frankly a paltry sum to live on. That’s why saving for the future is so important. It might seem wise to enjoy life now and worry about retirement later, but you’d only be damaging your future quality of life.

Pensions are a highly tax-efficient way of saving and now offer a great deal of flexibility in retirement, as when you retire you can gain access to 25% of your pension pot as a tax-free lump sum, with the remainder taxed at your marginal rate.

The current pension annual allowance is set at £40,000, so if saving for your future is a priority, it is worth investigating which pension is right for you, sooner rather than later.

 

3. Protect Your Estate from Tax

Inheritance Tax (IHT) is a concern for people from all walks of life. If you are hoping to leave a legacy to your loved ones, the last thing you would want is for that legacy to be taxed at 40% and lost to the Government.

One simple way of combatting this is to consider using your annual IHT allowance. During your life, you are allowed to give away £3,000 per year without incurring any IHT charges upon your death. There are of course downsides to this, in that you lose all access and control over the money, but it may be a tax-efficient strategy to consider.

 

4. Don’t Overpay Your Capital Gains Tax

The final tax consideration at this time of year is Capital Gains Tax, which is also given on a ‘use it or lose it’ basis and is currently set at £12,000. The issue of Capital Gains Tax is most acute if you hold investments which have grown above your tax-free allowance.

To ensure you make the most of your Capital Gains Allowance, it is generally recommended to sell down a portion of your portfolio to realise the growth made, but only enough to maximise your allowance, is the most prudent strategy.

These funds can then be used to fund any outstanding allowance on your ISA, for example. The advantage of doing so is that by placing your money from a taxable to non-taxable environment you have the potential for further growth, and you benefit in the longer term by potentially reducing a future bill.

There’s plenty of time left before the taxman comes knocking once again, but there’s no better time than the present to start looking into how you can save you and your business thousands of pounds simply through tax allowances you might not have previously been aware of.

 

Continue Reading

Magazine

Partner Events

Trending

DIGITAL TRANSFORMATION DIGITAL TRANSFORMATION
Banking4 days ago

WHY DIGITAL TRANSFORMATION IS CRUCIAL FOR BANKS

David Murphy, Managing Partner, Financial Services EMEA & APAC at digital consultancy Publicis Sapient   Over the past five years,...

DIGITAL DIGITAL
Top Stories5 days ago

REACHING THE NOT-SO DIGITAL NATIVES

By Garry Hamilton, Group Business Development Director, Equator   It’s 2020. There’s no denying that banks and financial institutions have...

Bank Bank
Banking5 days ago

THE ‘LEGO-IFICATION’ OF BANKING IT AND THE RISE OF DIGITAL FINANCE ECOSYSTEMS: FOUR PRIORITIES FOR BANKS IN 2020

Danny Healy, financial technology evangelist, MuleSoft   The advent of the open banking era and continued emergence of fintech has...

Insurance Insurance
Wealth Management5 days ago

WHAT TO DO WITH YOUR LIFE SAVINGS, RETIREMENT AND INSURANCE POLICIES WHEN EMIGRATING

By Renier Hugo, Alexander Forbes Certified Financial Planner   With South Africans increasingly opting to live abroad, a hot topic...

Mobey Forum Mobey Forum
News5 days ago

MOBEY FORUM: BANKS’ BIG OPPORTUNITY IN DIGITAL ID WON’T LAST FOREVER

New report offers strategic insights for banks following in-depth review of seven prominent digital ID schemes across Europe and North...

Tax Tax
Wealth Management1 week ago

THE END OF YEAR TAX CHECKS THAT COULD SAVE YOU THOUSANDS

Charlie Reading, Founder and MD of Efficient Portfolio After HMRC’s tax return deadline at the end of January, it can be...

AI AI
Top Stories1 week ago

RISK VS REWARD: IS AI TAKING OVER?

Xavier Fernandes, Analytics Director at Metapraxis A study by Oxford University academics into “The Future of Employment” in 2013 prompted...

BUSINESS PLANNING BUSINESS PLANNING
News1 week ago

HALO TRUST USES ADAPTIVE INSIGHTS FOR STRATEGIC BUSINESS PLANNING

Cloud-based financial planning helps HALO Trust deliver greater benefit to communities affected by war   Adaptive Insights, a Workday company,...

News1 week ago

IS DATA PROTECTION AND PRIVACY RELEVANT ACROSS ALL STRATA IN INDIAN SOCIETY?

A Study by Pensaar Design With CGAP Pensaar Design has been working on a research study with CGAP to better...

banks banks
Banking1 week ago

THE RISE OF CHALLENGER BANKS AND HOW LEGACY BANKS ARE TRYING TO KEEP UP

Jean Van Vuuren, Regional VP for UK, Middle East and South Africa at Alfresco   The finance world has been...

ORGANISATIONS ORGANISATIONS
News1 week ago

NEW STUDY: AI HELPS ORGANISATIONS GROW PROFITS 80 PERCENT FASTER

Global research highlights how organisations are capitalising on emerging technologies to enhance finance and operations for competitive advantage   Organisations...

INVESTMENT INVESTMENT
News1 week ago

UK START-UPS MUST MAKE THE MOST OF A SMALL WINDOW TO CAPITALISE ON INVESTMENT OPPORTUNITIES, FOX WILLIAMS WARNS

Despite rising investment, Brexit and growing interest from tech giants could cut off start-ups’ opportunities in 2020   While a...

Open work Open work
News1 week ago

XPEDITION UPGRADES MORE THAN ONE MILLION OPENWORK CLIENTS TO THE DIGITAL AGE

Xpedition, leader in the implementation of cloud-based business applications, has deployed a new system which has digitally transformed the customer...

Microsoft Microsoft
News1 week ago

ORACLE AND MICROSOFT BRING ENTERPRISE CLOUD INTEROPERABILITY TO EUROPEAN CUSTOMERS

Today, Oracle is announcing the continued expansion of its cloud interoperability partnership with Microsoft with a new cloud interconnect location in Amsterdam....

technology technology
Business1 week ago

THE EMOTIONAL AND FINANCIAL COST OF WORKING WITH OUTDATED TECHNOLOGY

Slow Tech Could Waste 24 Hours of Worktime a Year In this digital age, businesses are hugely reliant on technology...

stock market stock market
Top Stories2 weeks ago

HOW TECHNOLOGY IS FUTUREPROOFING STOCK MARKET TRADING

Tony Shaw, Executive Director, London Office and Head Sales UK & Ireland at the Swiss Stock Exchange   Markets are shifting,...

TOP 10 COUNTRIES TOP 10 COUNTRIES
Wealth Management2 weeks ago

REVEALED: THE TOP 10 COUNTRIES THAT ARE REDUCING THEIR RELIANCE ON OIL

Ben Lobel, Copywriter at DailyFX New tool charts global commodity trading over the last decade The UK has reduced its...

move fast move fast
Finance2 weeks ago

‘MOVE FAST BUT DON’T BREAK THINGS’ – WHY FINTECHS WILL COME TO LOVE REGULATION

Alex Johnson, Director of Portfolio Marketing, FICO   The guiding ethos of fintech is move fast and break things. It’s...

Company Company
Business2 weeks ago

OFFSHORE COMPANY FORMATION TACTICS FOR SMEs

James Turner, Director at company formation specialists, Turner Little   Starting a business brings with it its own set of challenges,...

3DS 3DS
News2 weeks ago

EMV® 3DS – PAVING THE WAY FOR SEAMLESS AUTHENTICATION

Jean Fang, Product Manager, FIME   The growth of e-commerce, m-commerce and remote commerce transactions is showing no signs of...

Trending