Frank O'Donnell

Cutting savings not the answer when times are tough – Citywire.

Economy watch: What next for Britain? | This is Money.

A revised second draft of the Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011, which abolish the default retirement age (DRA) of 65, have now been published and laid before Parliament and will come into force on 6 April 2011.  The amended version now corrects the drafting anomaly in the transitional provisions and makes it clear that the transitional arrangements will apply regardless of whether an employee’s 65^th birthday is before or after 6 April 2011 (provided always that it is before 1 October 2011).

The last date for issuing a notice of intended retirement date under the current regime is 5 April 2011 and the employer can set the retirement date at any time up to 12 months later, provided six to 12 months’ notice of intended retirement is given, the statutory retirement procedure is followed correctly and the employee has attained or will attain the age of 65 on or before 30 September 2011.

The amended draft regulations also now contain a longstop date of 5 January 2012 for an employee to exercise his right to request to work beyond retirement.  This enables an employee who is given 12 months’ notice of retirement on 5 April 2011 to exercise his right to request on the last day available (which is three months before the employer’s notice runs out).

A note from the Government states that an extension of employment of up to six months can still be agreed during the transitional period through the statutory retirement procedure.  Any purported retirement dismissal notified from 6 April 2011 onwards will, if not objectively justified, amount to unlawful age discrimination under section 13 of the Equality Act 2010.  It is also likely to constitute an unfair dismissal.

Strong demand for good-quality family houses underpinned the UK property market and helped support price growth towards the end of last year, according to estate agents Winkworth.

According to the group’s latest report, the average asking prices of properties on its books rose from £494,000 to £532,000 between August and November 2010.

Overall demand from buyers fell during the three months, however, as confidence waned and mortgage availability remained tight.

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1. Research, research, research – know the area you are buying into. Regeneration plans and new Tube stations are great indicators of up and coming areas and capital appreciation. Apply the ten-minute rule for access to transport links, bars and restaurants and local amenities.

2. Location – consider who your ideal tenants will be. To attract quality tenants you need quality locations.

3. Buy well – consider both price and content. Research prices in the area and look for comparables. Can white goods, flooring or furnishing be included in the purchase?

4. Make sure the numbers work – most wealth is created through capital appreciation, so buy a property that supports this type of growth. Ensure you include all costs in your financial projections (such as legal fees, stamp duty, service charges, ground rent and contingency to accommodate void periods between tenants). These costs are all too often ignored, leading to negative monthly cash flows.

5. Appoint the right advisers – a professional regulated adviser can secure the best deals free from fees and aligned to your investment strategy. Good letting agents will minimise void periods. Remember that not all solicitors are off-plan specialists.

6. Don’t expect to get rich quick – property investment should be approached with a long-term view. It is an asset class that in the medium to long term has outperformed all other asset classes and we would encourage people to build a sustainable, appropriately geared portfolio over a number of years.

7. Never ignore the basics of supply and demand – find out what is needed in your chosen area. The markets for one-bedroom flats and four-bedroom houses do not follow the same pattern.

8. Don’t be influenced by your emotions – you’re not living in your investment so decorate and furnish at an appropriate level of quality. Make sure you understand what quality is required and don’t be tempted to furnish cheaply if you want to retain quality tenants.

9. Be wary of incentives – particularly schemes or developments where you are under pressure to sign up quickly to secure the deal, and never buy an off-plan or new property without the guarantee of either a National House-Building Council (NHBC) or Zurich ten-year warranty.

10. Don’t pay over the odds – avoid paying finder’s fees, commissions or subscriptions, particularly prior to completion. If the investment proposition is a sound one, there should be no reason to pay up-front fees.

The number of mortgages available from UK lenders has more than doubled in the last two years, but other factors continue to keep buyers out of the housing market.

Research by Moneyfacts.co.uk shows choice falling to an all-time low two years ago, when only 1,097 residential mortgage products were available.

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As you will no doubt have heard this week, the Court of Justice of the European Union (ECJ) published its ruling on the use of gender in insurance risk assessment and pricing.

Following this, the UK government looks set to endorse a controversial gender directive from the European Commission that will make it illegal for insurance companies to take into account differences in sex when setting insurance premiums, according to This is London.

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Soros: UK risks slipping back into recession.

Self-Invested Personal Pensions (SIPPs) have been around since 1989, but after the introduction of Pension Simplification legislation on 6 April 2006, they’ve become more accessible.

If you would like to have more control over your own pension fund and be able to make investment decisions yourself with the option of our professional help, a SIPP could be the retirement planning solution to discuss with us.

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As the festive season approaches, I would like to take this opportunity to thank you for your continued business.  It is business associates like you who make our jobs a pleasure and keep our business successful.