Research from Royal London has shown that savers could potentially risk throwing away thousands of pounds if they choose to cash in their pension to purchase a second property. The mutual insurer found that 15% of people aged over 55 would consider investing in a buy-to-let property to fund their retirement. However, for those approaching the age at which they can access their pension (45-54) the figure almost doubles to 29%. Royal London suggests that savers should think twice before raiding their pension as not only would they have to pay income tax on any pension withdrawal; they would also incur costs such as stamp duty. These taxes can bite huge chunks out of the initial sum meaning people may need to radically rethink what type of property they can afford.
The Association of Mortgage intermediaries has warned that a shift to execution-only sales could cause a "number of worrying potential unintended outcomes" including the potential for future compensation claims.
If you want to do some garden maintenance that actually amounts to a criminal offence? According to a new survey, over half of British gardeners (53 per cent) said they would chop down a neighbour's branch without asking if it was hanging over into their garden – or even if they weren't sure what the property boundaries were. The potential legal repercussions of this? Your neighbour could take you to court for criminal damage, and you could face a fine.
The Government has announced a new Help to Buy scheme to run from April 2021. It is restricted to first-time buyers and includes regional property price caps to ensure the scheme reaches the people who need it most. There are no changes to the current Help to Buy equity loan scheme which runs to March 2021.
Nationwide's Chief Economist, Robert Gardner, shares his views on the outlook for the UK economy, housing and mortgage market and interest rates, in this latest economic update video.