View more on these topics

Richard Verdin – Director of Housing and Protection Markets Legal & General

The Chancellor started his speech by reminding us all that the backdrop to the housing market was healthy with inflation and interest rates at their lowest levels for 35 years.

It was therefore unlikely that he would do anything to jeopardise the confidence that exists. He duly took a year off from increasing stamp duty and posted a largely neutral budget for the property market in the main.

His commitment to a target inflation of 2.25% at this time next year and 2.5% at the end of next year signals continuing stability to the interest rate environment with scope for possible reductions later this year.

He did announce further moves to encourage the clean up of contaminated land, and a further initiative designed to bring additional properties to the market through a reduction to 5% in the VAT on homes renovated for occupation that have been left empty for at least 3 years.

He also announced 100% capital allowances for the renovation of property over commercial premises for letting purposes. This does little for the mortgage market as this type of property has traditionally been harder to mortgage and sell. Therefore initiatives to encourage the use of this property for letting appears sensible.

The most significant move was to announce a 100% exemption on stamp duty for property transactions in disadvantaged areas (postcodes to be announced). The idea is to encourage business and families to move into and help regenerate these areas which in itself is admirable, however the initiative may well prove to be something of a double edged sword for those already living in there.




Positive approach to e-solutions

One of the key conclusions of the strategic review into the future use of technology in the IFA market, carried out by Cap Gemini Ernst & Young last August, was that in the 80s and 90s small advisers had needed compliance clubs (networks). However, in the 21st century they would increasingly need technology clubs to […]

Sales boost for NU Healthcare

Private medical insurance business at Norwich Union Healthcare has risen by 15.6 per cent in the last year. The PMI specialist says new business rose to £2.04m last year from £1.77m in 1999. This is the first time the healthcare division of the life office has released results separately from the rest of the group. […]

A class act

I would like to add some objective comment to the letters from Philip Thomas and Tony Fisher. I used Private Label&#39s service when it was operated by the ex-TMP people from the Heswall office and I have used their service since business was transferred back to Bracknell. I can tell you that the Bracknell service […]

Aifa wants FSA to spell out its tree-walking rationale

The FSA says it is willing to consider alternatives to blocking commission payments to IFAs where providers take clients through decision trees, following lobbying by Aifa and IFAs. Aifa has written to the FSA, demanding an explanation of its thinking behind banning commission on stakeholder where clients are taken through trees by life office staff. […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm