It’s been a week packed with economic news – with both an inflation update and a base rate decision happening within a day of each other.  

The inflation data was released first, as this is important information for the Bank of England’s Monetary Policy Committee (MPC) to chew over when making their decision on interest rates.  

But it was not good news.

It was thought that inflation would ease slightly in May, as April saw a number of key price rises, such as energy costs and an increase in employer National Insurance contributions, which is why we saw the jump last month. However, the Office for National Statistics (ONS) confirmed that the rate of Consumer Prices inflation (CPI) remained at 3.4% in the 12 months to May 2025 – keeping the rising cost of living at the highest it’s been for more than a year.  

What has caused inflation to stick?

In general, a main concern for households will be that the cost of food increased faster in the 12 months to May 2025, than last month – up 4.4% year on year, from 3.4% in the 12 months to April. But this was spurred on by a record increase in the price of chocolate – soaring by more than 17% in the last 12 months due to poor harvests in the main cocoa producers of Ghana and the Ivory Coast.

Those who don’t eat chocolate therefore are likely to be less affected – remember that the headline rate of inflation is based on a huge virtual basket of goods and services that we, as a nation, consume. But we all consume different things, so will be affected differently.

It wasn’t just chocolate that has seen a significant increase in price. Meat, in particular beef and veal, has increased by 17% too. The price rise of chicken has also accelerated a little over the last month – but it’s a much more manageable 4.4%, so could be a more affordable option?

Taking a more positive view, the price of some clothing and footwear actually fell over the last 12 months, but by a much more underwhelming 0.3%.  

The bottom line though, is that prices are still rising by more than the government’s target of 2% - so this is something the Bank of England needs to take into consideration when deciding on what to do with interest rates. 

What does this mean for savers?

The good news for savers is that with base rate remaining at 4.25%, savings rates should not fall either – although it depends who you hold your cash with!

A number of high street banks are currently in the process of cutting the rates on their easy access accounts in particular – so if you are still holding cash with one of these banks, it’s time to move. With inflation sticking at 3.4%, leaving your cash to fester in a poor paying account will not only mean less interest paid to you, but your cash will be losing its purchasing power too.

For example, if you have £10,000 in an account with a high street bank earning 1.15% AER (NatWest Flexible Saver), with inflation at 3.4%, after just one year, although the total balance including accrued interest would be £10,115, the real value after inflation would be just £9,782! If you were to choose a more competitive account paying around 4.50%, not only would the total balance be more – at £10,450 - the real value would be positive too - £10,106. So, in this example, choosing the wrong account could hit your purchasing power by more than £300!  

We’ve got an easy to use Inflation Calculator which shows you exactly what the impact is of inflation on your own personal savings accounts. Just put in your balances and the interest rate you’re earning, and we’ll show you if you are in positive or negative territory! 

See how inflation is affecting your cash savings below:

Should I fix some of my savings? 

For those that don’t want or need to keep all their money in cash there are plenty of inflation beating options open to you, especially if you can lock some of it away.

With the current expectation that there will be at least two base rate cuts later this year, this would almost certainly lead to even more rate cuts to variable rate accounts, so locking in some of your cash could be a wise decision to hedge against this.

I’ve been pleasantly surprised to see that we have actually seen competition between key providers pushing the rates of fixed term accounts upwards recently.

In fact, the 1-year and 2-year top rates are now the highest they’ve been since early May,  with Cynergy Bank paying 4.55% AER and 4.45% respectively.

The top 3-year bonds with JN Bank and Birmingham Bank, are both offering 4.45% too.

Over 5-years the news has also been positive, as Birmingham Bank has upped its market- leading rate to 4.47% AER,  pipping the next best with Hampshire Trust Bank by just 0.01%.

Whilst the new better rates are only marginally higher, it does mean that savers have plenty of options to choose from that still beat inflation – especially if we see interest rates and inflation fall in the next few months and years.  

So, if you have been procrastinating, now could be the time to get on and fix some of your cash, especially if it’s languishing in a poor paying account whilst you decide when to make your move.

That said, remember that generally there is no access to your cash until maturity in a fixed rate bond and whilst fixed term cash ISAs do allow access, there is normally a hefty penalty. So, you do need to be comfortable that you don’t need the money that you are thinking of tying up.

Keep an eye on our Best Buy tables for the latest top rates. 

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The interest rates in this article are correct as at 20/6/2025.

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.
The Financial Conduct Authority (FCA) does not regulate cash advice.

The latest figures from the Bank of England have revealed a surge in cash ISA deposits, the sharpest increase ever recorded, and while March and April are typically strong months for ISA subscriptions, this year has seen an exceptional level of urgency.  

The numbers speak for themselves: in April 2025 over £14 billion was squirrelled away into these valuable tax-free cash ISA savings accounts – more than double the amount deposited in March.  Savers are moving fast, and the overriding reason appears to be concern that the current cash ISA allowance may be under threat.

While no formal proposals have been tabled, it would not be the first time that tax-efficient savings vehicles find themselves in the Treasury’s crosshairs. In times of fiscal tightening, generous allowances are often seen as an easy win. However, on this occasion, the reason that this change may be introduced is reported to be to try and encourage people to invest into UK investments and stock markets, rather than leave their money in cash. The overall ISA allowance of £20,000 is not to be reduced.

Savers appear to be acting pre-emptively, funnelling cash into ISAs while the current rules remain intact, hoping that any changes made will not be retrospective.

Cash ISAs important as higher rates use up Personal Savings Allowance 

The fact that interest rates are so much higher than they were a few years ago means that cash ISAs are useful for savers looking to keep their returns as tax efficient as possible. After years of ultra-low returns, many savers are now enjoying meaningful interest on their cash once again, with many cash ISAs offering an interest rate in excess of 4% — an attractive prospect when paired with the promise of tax-free returns. For taxpayers in particular, the ability to shield interest from HMRC has become more valuable as the Personal Savings Allowance (PSA) is quickly used up.

Whilst five years ago, when even some of the top interest rates were around just 1.5%, it would have taken a deposit of over £66,000 to breach the basic rate PSA of £1,000. Today, with interest rates of 4% or more, just £25,000 in a top savings account would produce more than £1,000. For higher rate taxpayers it’s just £12,500 as the allowance is halved to £500  

Although interest rates have fallen over the last six months in line with base rates, more people realise that it’s unlikely we’ll see interest rates heading back down to the bad old days, when really low interest rates meant that you could often ignore the tax impact on savings interest.

Check the small print before you commit 

It’s important, however, that savers don’t rush in without checking the finer details. It’s crucial to check what terms and conditions apply as many of the easy access cash ISAs include short-term bonuses which have a ‘sell by date’ and/or restricted access.  

In some cases, it might still be worth using taxable savings, especially if you’re not close to breaching your PSA. But with allowances under threat, many are rightly deciding that the long-term, tax-free shelter of an ISA is worth making the most of while they can.

Ultimately, while the rush to deposit into cash ISAs may be driven by anxiety about the allowance being reduced, it’s also a good reminder of the value of making the most of your tax-free allowances. Whether it’s a cash ISA or a stocks and shares one – or whether you put money into a pension - being as tax efficient as possible remains one of the simplest and most effective ways to protect your savings and investments.  

If you want to check that you are making the most of your tax allowances, why not speak to a TPO adviser and arrange a free initial consultation today.

Arrange your free initial consultation 

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice. 

Inflation in the UK jumped suddenly to 3.5% last month – the highest rate recorded in more than a year. The rise came after significant increases in energy costs, water bills and council tax – essentially unavoidable household bills – putting inflation back on the rise again. Water and sewerage bills were the standout, rising by 26.1%, the fastest rate of increase since privatisation in 1989.

The unwanted surge in inflation, as reported by the Office for National Statistics (ONS), came after a decline in the rate of inflation over the first quarter of the year to just 2.6% in March. It was hoped that the rate of inflation would reach the Bank of England’s target of 2.0% and that interest rates would continue to fall as a result.

It was generally expected that inflation would rise, but the jump was more than anticipated. A poll of City economists had forecast a rise of 3.3% in April, while the central bank expected last month’s inflation rate to hit 3.4%.  

“Businesses are experiencing cost pressures amid the rise in national minimum/living wage, employer’s national insurance contributions and regulated price increases. Some of these costs will be passed down to consumers through higher prices.” – Monica George Michail, Economist at the National Institute of Economic and Social Research.  

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.  

Rising interest rates directly affect the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%.  

Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.  

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

Inflationary changes often affect many areas of financial life, and can be difficult to keep track of. Our chartered advisers are unbiased, meaning that they can give whole of market advice, and so are best placed to give you a plan tailored exactly to your personal financial goals.  

If you’d like to know more, request a free non-committal initial consultation with one of our team or give us a call on 0333 323 9065.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

More than £6.3 billion was deposited into cash ISAs in March 2025, the latest figures from the Bank of England show. This sharp rise, up from just under £4 billion in February illustrates the ongoing value that cash ISAs offer to savers.

March is always a key month for ISA deposits as people scramble to make use of their ISA allowance before the end of the tax year. This year’s spike however is particularly notable, likely driven by speculation that chancellor Rachel Reeves may cut the cash ISA annual allowance to as little as £4,000 – from its current level of £20,000, in a bid to encourage people to invest their money, rather than leaving it in cash.  

No changes were announced in the recent Spring Statement which has only intensified cash ISA activity. Many savers are now rushing to use their allowance as soon as possible, in the hope that any future changes will not be applied retrospectively.

The impact of rising interest rates 

Another key reason for the ongoing popularity of the cash ISA is because savers are paying more interest on their savings, given that interest rates are far higher than they were. In April 2016, the Personal Savings Allowance (PSA) was introduced.  All basic and higher rate taxpayers have a PSA - £1,000 a year and £500 a year respectively – which means that they can earn up to this amount in interest on their cash savings, before paying any tax. Additional rate taxpayers do not have a PSA. When the PSA was introduced, interest rates were a fraction of what they are today, so savers are now fully utilising their PSA with smaller deposits.  

Back in April 2016, a top 1-year bond was paying 1.90% - so it would have taken a deposit of £52,600 to pretty much use up the basic rate PSA. Today with the top 1-year bond paying 4.55% just £22,000 will produce £1,000 in interest.

So, cash ISAs have become more and more popular.

We’ll have to wait and see what the fate of the cash ISA will be – in the meantime, it makes sense to use your allowance as soon as possible, especially if you pay tax on your savings. 

Check out our Best Buy tables here. 

As a final thought – instead of reducing the cash ISA allowance, why not encourage those who collectively have over £900 billion deposited in taxable easy access accounts, much of which will be earning less than inflation, to move that money into investments that could help them to earn more in the longer term?  

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The opinions shared in this article are solely those of the individual and they do not necessarily reflect those of The Private Office.

The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, tax or trust advice. 

Following the latest Bank of England base rate cut on 8th May of 0.25%, to 4.25%, many households and investors are wondering what the implications might be for their financial plans. And if the forecasts are to be believed, it won’t be the last one. While that might sound like good news for borrowers, it’s not such a rosy picture for savers. And for those with investments, pensions or mortgages, now could be the right time to give your finances a once-over. 

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Good news for borrowers – not so great for savers 

For savers, the prospect of a lower base rate is generally unwelcome. Interest paid on savings accounts typically tracks the base rate to some extent, and we had already seen a downturn in fixed-term savings rates, in anticipation of the base rate decision. Variable rates are likely to follow suit now the rate cut has happened.  

Providers often anticipate base rate cuts and adjust their offerings accordingly, meaning the window to secure attractive rates may be closing. So if you’ve been toying with the idea of locking in a fixed rate, you may want to get on with it. There’s a decent chance that what’s on offer now won’t be around much longer, and holding off could mean settling for less.   

Take a look at our Best Buy tables to see the best rates available.

Investors: time to get your money working again? 

Over the last couple of years, rising interest rates made cash a pretty comfortable place to sit. But if those rates are now heading south, we expect more people to look again at the stock market, to stay ahead of inflation and keep their money working harder.  

From a broader investment standpoint, lower interest rates can be a boost to asset prices as borrowing becomes cheaper, for individuals and businesses, and the returns from cash become less attractive. That often supports growth in certain sectors and can offer opportunities for investors who know where to look.

For those who don’t know where to look, the investment experts at TPO can help. We take this kind of market insight into account when reviewing and managing client portfolios - helping investors stay aligned with their goals, even as economic conditions shift.

That said, keeping enough cash on hand for short-term needs is still vital - maintaining a sensible cash buffer remains important to provide flexibility and peace of mind during periods of market volatility. It means you’re not forced to sell investments during market dips.

Thinking about an annuity? Timing matters 

If you’re nearing retirement and considering buying an annuity, the base rate change is something to pay close attention to. Falling interest rates tend to drag annuity rates down with them, meaning the income you can secure for life may end up being lower than it was just a few weeks ago. And with annuities enjoying something of a resurgence recently, it’s not just about whether you buy one – it’s also about when you do and how you go about it. The key here is not to take the first offer from your pension provider. There are often better deals available elsewhere, particularly for those with any health issues - even minor ones can make a difference.  

Deciding whether an annuity is the right option is not always straightforward, and making well-informed choices in retirement is essential. This is an area where professional advice can be invaluable. 

Mortgage holders could benefit - but make the most of it 

Mortgage holders may view a base rate cut more favourably. Those on variable rate deals or trackers will likely see their monthly payments fall, while those due to remortgage could benefit from lower rates than might otherwise have been available.  

But don’t just enjoy the lower cost and leave it at that. If your mortgage is more affordable, why not consider overpaying a little each month (if your lender allows) or using the extra cash to top up your pension or ISA? It’s all about making your money stretch further while the opportunity’s there, to make your future financial position healthier.  

For many, the value of impartial, expert advice cannot be overstated. Whether you are planning for retirement, managing investments or looking to optimise your savings, a tailored financial plan can offer both clarity and confidence.  

If you’re unsure how the recent base rate decision might affect your financial plans, or if you simply want to make sure you’re on the right path, now may be the ideal time to get in touch. 

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

Investment returns are not guaranteed, and you may get back less than you originally invested. Past performance is not a guide to future returns.

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax.

National Savings & Investments (NS&I) has raised interest rates across its range of Guaranteed Income Bonds and Guaranteed Growth Bonds – collectively known as their British Savings Bonds. And for the first time in over 15 years, all four bond terms: 1, 2, 3, and 5 years are available to both new and existing customers.

This move is presumably a response to the government's decision in the Spring Budget to raise NS&I’s net financing target for 2024–25, from £9 billion in the previous tax year, to £12 billion in 2025-26. A notable 33% increase.

The net financing target is the amount of money NS&I needs to raise from savers, allowing for any customer withdrawals and money paid out as Premium Bond prizes. With a higher fundraising target, it’s not surprising that NS&I is stepping up efforts to attract savers’ money – good news for savers.

What’s changed?

NS&I has made moderate but welcome improvements to its fixed-term savings products. Here’s how the rates compare before and after the latest update:

Source: NS&I, 2025

However, even with these new rates, better returns can still be found elsewhere - particularly if you're happy to look beyond the high-street names and explore the wider savings market.

For example, Cynergy Bank is paying 4.65% on its 1-year Fixed Rate Bond – on a deposit of £50,000 there’s a difference of earning £2,325 (before the deduction of tax) or £2,025 with NS&I.

Take a look at our Best Buy tables for all the current top rates.

Over longer periods, this adds up significantly.

With the top 5-year bond on the market paying 4.56% (Secure Trust Bank) a deposit of £50,000 would provide interest of £250 more each year than it would with NS&I – and if you were to roll over and compound that interest, you could miss out on nearly £1,500 over the term. Not a trivial amount.

Why the rate hikes now?

Considering that the markets are anticipating a base rate cut at next Bank of England MPC meeting, this is an interesting move from NS&I.

NS&I generally relies on its trusted name and government backing to attract savers, as its rates are rarely market leading. However, the revised net financing target, set by the Treasury not NS&I itself, is likely to be the driving force of this decision. Essentially, NS&I is tasked with helping to raise money for the government, directly from savers. When the target increases, as it has now, NS&I need to raise its rates to become more attractive.

Although not offering top rates, NS&I products offer a unique advantage that any funds deposited are 100% backed by HM Treasury, not limited to the Financial Services Compensation Scheme’s (FSCS) usual £85,000 limit per person, per institution. And savers can deposit up to £1m into each issue of the British Savings Bonds – and more still into the easy access accounts. This security is unmatched and gives real peace of mind, especially for those with large sums to put away.

It’s all about what matters most to you. If absolute security is your priority and you have a large cash holding, NS&I is a useful option. But if maximising your return is the aim, and you're willing to split your savings between different providers, keeping within the FSCS limit of £85,000 per institution, there are certainly stronger rates out there.

For those with larger amounts of cash, the rise of cash savings platforms has added a simple and flexible way to get more from your savings.

Think of them like a supermarket for savings, offering a range of competitive accounts from different banks, all accessible through a single application and login. Whether you’re after easy access or fixed-term options, these platforms do often offer competitive and sometimes even market-leading and exclusive products even if they’re not whole of the market.

Perhaps most importantly, they make it easier to spread your savings across multiple banks, helping you stay within FSCS protection limits while keeping your money working harder.

With our Savers Hub, powered by Insignis, you can now open, manage and switch between accounts all in one place bringing ease and efficiency to managing your savings.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash advice.

Question: As I was a bit late getting organised, I put £20,000 into an easy-access cash ISA at the end of the last tax year in a last-minute effort to use up my allowance, but now I’d like to move it to a fixed-rate ISA. Are there any restrictions on transferring it so soon? And will the transfer affect this year’s ISA allowance?

It was a smart move to make use of your ISA allowance before the end of the last tax year—especially with increasing speculation that the current £20,000 cash ISA limit could be reduced in the near future. Every year, many people miss out simply by not acting in time, so even a last-minute deposit means you’ve managed to make the most of your tax-free savings allowance.

Choosing an easy access ISA was a sensible decision too. It gives you the flexibility to pause and reflect on how and when you might need access to that money - perfect for reassessing your financial goals without locking anything in immediately.

Now to your question - yes, you absolutely can move funds from an easy access ISA to another ISA, even if you just opened it. There’s no minimum time you need to hold the funds before transferring. You can choose to transfer the full amount or just a portion, either to a new provider or within the same one, especially if they’re offering a competitive fixed rate that fits your needs. But it’s always wise to shop around to get the best returns. You can find our best buy tables here.

Just one crucial reminder: always transfer using your new provider’s official ISA transfer process. Withdrawing the money yourself and redepositing it could strip away the tax-free status and use up part or all of the new year’s ISA allowance.

For those who have already opened the current year’s cash ISA, following the ISA rule changes introduced in April 2024, you now have even greater flexibility when it comes to transferring. Unlike before, when only full transfers of the current year’s ISA were allowed, you can now make partial transfers too - giving you more control over how you manage your savings.

Importantly, as you managed to open and deposit cash into your ISA ahead of the end of the tax year on 5th April 2025, you can still deposit up to £20,000 until 5th April 2026, as well as transferring last year’s easy access ISA.

That said, it’s worth getting a move on - both with transferring your existing ISA and opening a new one. There’s a lot of talk in the markets about possible interest rate cuts in the near future. If you’re considering locking into a fixed rate, now might be the time to act before the most attractive deals disappear. Fixing your rate now could help protect your savings from potential rate drops, giving you the chance to enjoy inflation-beating, tax-free interest over the term.

And remember, using your new ISA allowance sooner rather than later means you start earning tax-free interest earlier, which could make a meaningful difference over time. 

Ask me a question

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate tax advice. 

The opinions shared in this article are solely those of the individual and they do not necessarily reflect those of The Private Office. 

For decades, investing in property has been a go-to strategy for building wealth and generating income in the UK. Buy-to-let properties or owning a second home were often seen as a reliable way to create long-term financial security, whether supplementing income during working life or supporting a more comfortable retirement. But in today’s climate, many landlords and second-home owners are beginning to question whether the benefits still outweigh the challenges.

The reality is that the landscape has shifted dramatically. What was once a tax-efficient, stable investment is now subject to a range of pressures that are squeezing profitability and testing investor confidence. While property remains a tangible asset with potential long-term value, the short-term headwinds are increasingly difficult to ignore.

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Rising tax and Regulatory pressures

One of the most significant changes has been the removal of full mortgage interest tax relief for private landlords. Before April 2020, landlords could deduct mortgage interest from their rental income, significantly reducing their tax bill. Now, however, this relief has been replaced with a 20% tax credit, which is far less favourable, particularly for higher and additional rate taxpayers. This change alone has increased tax liabilities for many, particularly those with large mortgages or multiple properties.

Alongside this, property investors face higher rates of stamp duty on second homes, frozen personal tax allowances until at least 2028, and increased scrutiny around rental income in tax calculations. For some, rental income that previously sat comfortably within a lower tax band is now pushing them into higher brackets, often unintentionally. As these thresholds remain static while incomes and rents rise, more landlords are being caught out.

The cost of borrowing has risen

The picture becomes even more challenging when you factor in rising interest rates. Over the past two years, the Bank of England has raised the base rate in response to inflationary pressures. This has caused mortgage rates to jump significantly from the historic lows that many landlords had become accustomed to. For those coming off fixed-rate deals, the cost of borrowing has risen sharply, compressing net rental yields and in some cases, turning previously profitable properties into break-even or even loss-making ventures.

Data from the NRLA (National Residential Landlords Association) and other property bodies has shown a growing number of landlords reconsidering their future in the market. Some are scaling back their portfolios, while others are choosing to exit the market entirely, citing diminishing returns, higher costs, and increasing administrative burdens.

Upcoming legislation

New and upcoming legislation is also adding to the pressure. The government’s plan to tighten energy efficiency standards for rental properties is looming, with all new tenancies expected to meet an EPC rating of C or above by 2028, and existing tenancies by 2030. The cost of upgrading older properties—particularly those with traditional construction—can be substantial, and non-compliance risks fines of up to £30,000. Combined with routine maintenance, licensing requirements, and ongoing tenant management, the once 'passive' nature of property investment now looks much more involved.

Higher stamp duty and local tax changes

Announced in the Budget 2024, second home buyers are hit with a 5% surcharge for stamp duty, on top of the existing stamp duty rates.

Current stamp duty rates are:

Rates for a single property

You pay SDLT (Stamp Duty Land Tax) at these rates if, after buying the property, it is the only residential property you own. You usually pay 5% on top of these rates if you own another residential property.

Source: gov.uk

And another blow landed on the 1 April 2025. In an effort to discourage vacant second homes, several councils across the UK have introduced higher council tax rates on these properties—doubling the charges in some areas. While intended to free up housing stock and reduce the strain on local communities, the financial impact on second-home owners is undeniable.

Exploring your options

Faced with all of these challenges, many landlords are reviewing their options. Some are exploring the benefits of transferring properties into limited companies, which may allow for a more favourable tax treatment on mortgage interest and profits. However, this route isn’t without complications. Company mortgage rates are typically higher, and the costs of transferring properties—such as stamp duty and legal fees—can be significant. It’s not a one-size-fits-all solution, and the right approach will depend on an individual’s broader financial goals and circumstances.

Another avenue being considered is changing ownership of properties to a lower-earning spouse to minimise the overall tax burden. This strategy can be effective in some situations but must be carefully structured to avoid unintended tax consequences, especially around capital gains or future inheritance.

There is also a growing interest in diversifying away from property altogether. For those who have built up substantial equity, selling one or more properties and reinvesting the proceeds into a broader, more tax-efficient investment portfolio could be an option. Investment portfolios can be tailored to individual goals, risk tolerance, and tax planning needs. They can also provide greater flexibility and liquidity, unlike bricks and mortar.

Taking stock of your Financial Plan

It’s clear that the days of easy property profits are behind us, at least for the time being. That’s not to say property doesn’t still have a place in a diversified investment strategy—but relying on it as the cornerstone of a retirement or income plan may no longer be as robust as it once was. The combination of tax changes, regulation, interest rates, and property-specific risks mean that today’s landlords need to be far more strategic.

If you're currently weighing up your options, now may be the right time to seek independent financial advice. We can help you assess the viability of your property investments within the context of your broader financial plan. We can also identify opportunities to reduce tax, spread risk, and ensure your portfolio aligns with your financial goals—whether that’s maximising income, protecting capital, or planning for retirement.

At The Private Office, we work with clients who have £100,000 or more in investible assets to create bespoke financial strategies. As a chartered firm of independent advisers, The Private Office can help you understand your position, explore alternative investments, and develop a plan that’s tailored to your future.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 
The information provided in this article is based on the current allowances and legislation and is subject to change.

The Financial Conduct Authority (FCA) does not regulate tax advice or Buy to Let advice.

The latest inflation figures from the Office for National Statistics (ONS) revealed that inflation had fallen yet again to 2.6%, down from 2.8% in February, inching ever closer to the Bank of England’s 2% target.

It’s thought that petrol prices were the main contributor, falling to 137.5p per litre between February and March. The inflation decrease was also driven by a drop in recreation and culture prices, with toys, games and hobbies, in particular, falling significantly.

"The only significant offset came from the price of clothes which rose strongly this month" said Grant Fitzner, Chief Economist at the ONS.

However, analysts warn that the fall may only be temporary as rising bills and higher business costs could cause inflation rates to rise again.  

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.

Rising interest rates directly affect the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%. 
Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

To try to slow price rises, the Bank of England increased rates to encourage people to spend less, in order to bring inflation down.

While the rate has dropped, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace.

Check if your savings are keeping ahead of inflation with our inflation calculator below:

If you’d like to know more, or to request a free non-committal initial consultation with one of our advisers, give us a call on 0333 323 9065 or get in touch below.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash advice.

A proposed change to banking regulations could significantly increase the amount of savers' money protected if a bank or building society collapses, up from the current £85,000 to £110,000.

Currently, the deposit protection scheme, operated by the Financial Services Compensation Scheme (FSCS), guarantees up to £85,000 of a customer's savings if a financial institution fails. Under the new proposal, this limit would rise to £110,000 to match inflation.

The Prudential Regulation Authority (PRA), which oversees UK banks, stated that the planned increase reflects the changes in interest levels since the original limit was set in 2017, as consumer prices have increased significantly since then, meaning the current £85,000 protects a lot less than it used to.

Martyn Beauchamp, Chief Executive of the FSCS, said it was important the limit was reviewed regularly to ensure it stayed "appropriate and relevant".

The review could also see the Temporary High Balance protection rise from £1m to £1.4m. This offers temporary protection for large sums of money (above the usual £85,000 FSCS deposit limit) for a period of up to six months from when the money is received following certain life events such as an inheritance, receiving proceeds from a divorce or a life insurance policy and the sale of your main residence.

The plan is now open for consultation, and if approved, the higher protection limit would come into effect from 1 December 2025.

What is the deposit protection scheme?

The FSCS protects 100% of the first £85,000 you have saved in a cash savings account, per UK-regulated financial institution (not per account). So, in simple terms, if your bank, building society or credit union were to fail, the FSCS aims to get any savings up to this amount back to you within seven working days.

Aside from protecting your cash, the FSCS was created to prevent ‘bank runs’ - where many depositors attempt to withdraw their funds at the same time. No bank has enough liquidity to pay back all its deposits at once, so if someone thinks other depositors might withdraw soon, it is rational for them to do it first as a kind of pre-emptive measure which can lead to a cascade of withdrawals that results in a bank run. The existence of deposit insurance serves to break this reasoning.

Since the £85,000 Financial Services Compensation Scheme (FSCS) limit was set in 2010, consumer prices have increased more than 40%, meaning the same £85,000 buys a lot less. Moreover, the total amount of bank deposits has broadly doubled since 2010. In other words, the same limit is providing less insurance today than it did when it was established.

Should the limit be raised?

According to research by the Building Societies Association, the average that a person in the UK has in savings is £16,232 – well below the current level of £85,000.

So, although it sounds like a good idea, in reality it may not actually be of benefit to the majority, as most savers are already well protected, and the extra cost could actually mean that interest rates on offer are reduced to cover this cost.

The scheme is funded by a levy paid by financial services companies that are members of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), and an increase in the deposit protection will come with an additional cost to the financial institutions.

Added to that, advances in technology means that there are now cash savings platforms, such as our Savers Hub, allowing savers with larger sums to make just one application onto the platform, and then have access to multiple competitive savings accounts that are protected by the FSCS scheme.

Hopefully this will be taken into consideration in the consultation.

Understanding what kind of protections are available to you is key to proper financial planning. With the uncertainty in the global economy right now, it’s more important than ever to seek financial planning advice to help safeguard your future.

If you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to find out how can help.

Arrange a free initial consultation

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice.