In the recent Autumn Budget, Chancellor Rachel Reeves announced a significant increase in employer National Insurance Contributions (NICs), raising the rate from 13.8% to 15% and lowering the threshold at which employers start paying NICs from £9,100 to £5,000 per year. Set to take effect from April 2025, this dramatic NIC increase is expected to generate around £25 billion annually for the Treasury but could also lead to higher consumer prices as businesses in labour-intensive sectors like retail and hospitality brace for the financial impact.

Related:Labour’s Tax Bombshell Leaves Brits £300 Poorer: Record-Breaking Tax Burden Slams Wages, Soars Inflation, and Pummels UK Businesses

The rise in employer NICs has sent shockwaves through sectors heavily reliant on large workforces. Industry leaders warn that this added burden could force businesses to pass on increased costs to consumers, compounding the cost-of-living crisis.

Hospitality Sector Response to Employer NIC Increase

Tim Martin, chairman of JD Wetherspoon, has highlighted that the NIC hike will add an estimated £60 million to the company’s annual costs. He warned that such a significant financial impact would likely lead to price increases for customers, mirroring the broader concerns expressed by many hospitality businesses already grappling with economic pressures.

Retail Sector Impact: M&S, Sainsbury’s, and Primark React

Marks & Spencer (M&S) projects annual costs rising by £180 million due to the NIC increase combined with other recent budget measures, such as a minimum wage hike. While M&S aims to absorb some costs, they have warned that consumers will likely see higher prices.

Sainsbury’s, one of the UK’s largest supermarket chains, echoed similar concerns, indicating that the NIC hike will lead to unavoidable cost increases. To offset these additional expenses, Sainsbury’s may need to raise prices on goods and services, which will directly impact shoppers.

Primark has voiced similar challenges, noting that while it strives to avoid price hikes, the NIC increase and mounting financial pressures mean redirecting investment to key growth areas. Primark’s approach underlines the strain the NIC rise places on even the largest retail players.

Economic Consequences of NIC Hike and Consumer Costs

The increase in employer NICs, while intended to bolster public services, raises serious concerns about inflation and higher consumer prices. Businesses across the hospitality and retail sectors warn of potentially severe economic implications, including job cuts, reduced growth, and increased costs for everyday goods and services.

How Consumers Can Prepare for Price Increases

As companies grapple with the financial impact of the NIC hike, consumers can take practical steps to mitigate higher costs:

Review Your Budget: Adjust monthly budgets to accommodate potential price increases in essential goods and services.

Utilise Discounts and Loyalty Schemes: Seek out special offers, promotions, and loyalty programs to maximize savings at supermarkets and retail stores.

Compare Prices: Use apps and websites to compare prices and find the best deals.

Bulk Buying: Purchase non-perishable items in bulk to take advantage of lower per-unit costs.

Explore Alternatives: Consider substitute products or lower-cost brands without compromising on value.

Dine In More: Reduce dining-out expenses by preparing meals at home to save on hospitality-related costs.

Cashback and Rewards: Use cashback programs and credit card rewards to minimise the impact of rising prices.

Related:Cheapest UK supermarket to shop in 2024

FAQ: Understanding the Impact of the NIC Increase on Prices

What is the new employer NIC rate?
The rate has been increased from 13.8% to 15%, starting from April 2025.

Why is the NIC rate rising?
The increase aims to raise additional revenue for public services but poses challenges for businesses and could lead to higher consumer costs.

Which sectors are most affected?
Retail and hospitality, which rely on large workforces, are particularly impacted, with companies like JD Wetherspoon, Marks & Spencer, Sainsbury’s, and Primark voicing concerns.

Will consumer prices rise?
Many businesses anticipate that the added NIC costs will lead to higher prices for consumers, though the extent may vary by sector.

How can consumers cope with higher costs?
Consumers can budget carefully, shop for deals, use loyalty programs, and consider alternative products to manage rising expenses.

The Verdict: A Difficult Balancing Act for Businesses and Consumers

The rise in employer NICs presents a formidable challenge for businesses, especially in labour-heavy sectors like retail and hospitality. While companies such as JD Wetherspoon, Marks & Spencer, Sainsbury’s, and Primark explore ways to absorb costs, passing some of the burden onto consumers seems inevitable. As these changes approach consumers must prepare for a shifting economic landscape, with increased prices and new financial strategies to cope.

Schroders has appointed Phil Middleton as head of UK business.

Middleton, who is currently the firm’s CEO, Americas, will take on the role from 1 January 2025.

He replaces James Rainbow, who will be leaving Schroders to pursue opportunities outside of the business. Rainbow has been with the wealth manager for 17 years.

Middleton, who joined Schroders in 1992, has a track record of working in the UK market.

He said: “It’s fantastic to be returning to the UK market, where I have spent so much of my career.

“Schroders has an award-winning UK business, with a compelling investment proposition, dedicated to solving the complex investment needs of our clients.

“I look forward to leading our UK business to drive further success and growth.”

During his 32-year tenure at Schroder, Middleton has held senior roles across the business in distribution and marketing.

In 2020, he moved to New York after he was appointed head of institutional distribution, North America, overseeing direct sales, relationship management and consultant relations.

He became CEO of North America in January 2022 and was subsequently appointed in June 2023 as CEO Americas.

Meanwhile, Tom Darnowski has been promoted to CEO Americas.

Darnowski has been with Schroders since 2013 leading product development across the Americas and most recently held the role of global head of product strategy, where he oversaw Schroders’ global product range.

Both roles will continue to report to Karine Szenberg, global head of client group at Schroders.

Szenberg said: “We are excited to welcome Phil back to the UK, a market that he knows extensively and where he already has a well-established track record.

“The UK is an important and valued market for Schroders and we believe now is the right time for Phil to return to lead this part of our business.”

Schroders provides active asset management, wealth management and investment solutions, with £773.7bn of assets under management at 30 June 2024.

EQUITY release allows homeowners aged 55 and over to unlock the equity that has built up in their homes as tax-free cash. But is equity release a good idea for you?

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It may allow you to unlock from a minimum of £10,000 up to 53% of the value of your property – providing it is worth at least £70,000.

The exact amount of money that you can access is based on the age of the youngest homeowner, the value of your home, and your individual needs.

Calculate how much you could unlock

What are the advantages of equity release?

It can be a flexible option with many different plan features to suit individual needs and requirements. For example, you can choose how you take the money you release, either as a lump sum or in smaller amounts over time.

One of the main benefits of equity release for many people is you’re not required to make any repayments if you don’t wish to, as the money you unlock, plus accrued interest, is repaid when you die or move into long-term care. 

Plus, with a lifetime mortgage, the most popular type of equity release plan, you continue to own 100% of the home you love.

Another advantage is that the money you unlock can be used for a variety of reasons; a new car, holiday, or even providing a financial gift to loved ones. As long as any existing mortgage is repaid first, the money is yours to enjoy spending.

Plans which meet the Equity Release Council’s standards feature a no negative equity guarantee.  This means that your estate will never owe more than the property is worth when it is sold.

Calculate how much you could unlock

What are the drawbacks?

With equity release, interest can build up over time on the amount you borrow which can be a significant amount.

With a lump sum plan where you take all the money in one go, you know exactly how much this will be when you take the loan.

With a drawdown plan, where you take the money in smaller amounts over time, you only pay interest on the money when you withdraw it, and the interest rate is typically the current rate at the time the funds are drawn.

Releasing equity could increase your income enough to make you ineligible for means tested benefits, now or in the future.

Equity release may involve a home reversion plan or a lifetime mortgage, which is secured against your property and the value of your estate will be reduced. This means that there will be less wealth to pass on to loved ones, and funding long-term care will be impacted by releasing the money tied up in your home.  

Equity release can be complex, and it is a long-term financial commitment so it’s important to get the right advice.

Calculate how much you could unlock

Is equity release a good idea for you?

It’s important to carefully consider the impact of equity release on your individual circumstances when evaluating if it is a good idea for you.

Advice is required before proceeding with equity release and a specialist advisor, such as those at Age Partnership, can talk you through the different options to help you find out if it could be right for your individual needs, or if another option could be better.  

Initial advice is provided for free and without obligation. Only if your case completes would an advice fee of £1,895 be payable. Other lender and solicitor fees may apply.

Calculate how much you could unlock

Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Registered address, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB.           

UAE is undoubtedly one of the best places to find properties with the highest return on investment. Over the years, things have become really investor-friendly. In 2023, the country saw a massive boost in foreign direct investment, reaching $30.69 billion, which marks a 34.97% increase from the previous year. This upward trend underscores the growing confidence in the market, showcasing why finding the best investment properties for sale in UAE remains a lucrative opportunity for investors.

But what makes a property an attractive investment opportunity in UAE? And what are some of the top investment properties currently available in the country? Let’s dive in and guide you through finding the best investment properties in UAE that will bring you high returns in 2025 and beyond.

Signs of the Best Investment Properties for Sale in UAE

Here are some key signs to look out for when searching for the best investment properties for sale in UAE:

Location

Location is the most important factor when hunting for top investment properties in the UAE. But with so many options available, how do you choose the best location? Well, if it’s your first time, then we’ll recommend Dubai Marina. It is a stunning residential area known for its calming vibe, glamorous lifestyle, and towering skyscrapers. Called “The Tallest Block in the World,” Dubai Marina offers amazing marina views with various properties, from high-rise apartments to luxurious hotels.

Then, there’s Downtown Dubai, filled with energy and home to the iconic Burj Khalifa. Here, property choices range from cozy studios to spacious 5-bed townhouses. Prices for these high-end apartments start from AED 3,570,373. Downtown Dubai is perfect for those who want easy access to shopping malls, schools, and great entertainment like the Dubai Mall and Dubai Fountain.

And don’t forget about Palm Jumeirah, a jaw-dropping man-made island shaped like a palm tree. This fascinating island offers everything you need, from fun leisure activities to delightful dining options and pristine private beaches. If you invest in a property here, expect to get a very high rental return, especially during peak tourist seasons.

Infrastructure Development

The UAE’s property market has flourished in the last few years, driven by strategic investments and supportive government policies. The increase in foreign direct investment is living proof of the confidence investors have in this ever-evolving landscape. Key to this growth is the solid infrastructure development across the nation. 

The Ministry of Energy and Infrastructure has implemented 129 development projects worth approximately AED 11.8 billion as part of the ministry’s five-year plan (2018-2023). This extensive development has increased demand for properties, making UAE one of the hottest investment spots globally.

Market Trends

Staying updated with the latest market trends is crucial when searching for top investment properties in UAE. One noteworthy trend is the growing popularity of off-plan properties or projects that are still under construction. These offer attractive payment plans and flexible options, making them a preferred choice for many investors. In 2023 alone, Dubai recorded 57,360 off-plan property transactions, a 48% increase from 2022. The success of these off-plan projects shows a promising future for investors looking for high returns.

Rental Yields

When it comes to rental yields, the UAE is shining bright! In the first quarter of 2024, the average gross rental yield was 5.16%, which is an amazing increase from 4.93% in the third quarter of 2023. This rise shows how strong and exciting the property market is becoming in the UAE. For investors, such high rental yields mean more money in their pockets. It’s like getting a bigger piece of a delicious pie! So, if you’re looking to invest, the UAE is the place to be for exciting rental returns.

3 Best Investment Properties for Sale in UAE

Now that you know what makes a property an attractive investment opportunity and the key signs to look out for, let’s take a look at the 3 best investment properties for sale in UAE.

Number 1. Apartment in TIGER SKY TOWER

How wonderful would it be to start your day in a stunning 2-bedroom apartment located right in the bustling heart of Dubai’s Business Bay? Welcome to the TIGER SKY TOWER. With its generous 144.87 square meters of living space, this apartment is designed for comfort and relaxation.

You will have two elegant bathrooms to complement the luxurious living space, and being just 450 meters from the sea, the location couldn’t be more ideal for those who love the ocean breeze. Priced at 4 771 665 AED, this property not only provides you with modern living but also great value, situated close to Dubai’s vibrant city centre.

Number 2. Apartment in Beach Walk

Imagine living in a cozy apartment in the beautiful Beach Walk area of Dubai. This fabulous place features 2 bedrooms and 2 bathrooms, offering a comfortable living space of 93 square meters. It’s close to the sea, just 350 meters away, making it perfect for anyone who loves the beach.

The apartment is priced at 3,300,000 AED, giving you a chance to invest in a valuable property in a prime location in Dubai. If you invest in this property, you’ll also enjoy a range of amenities such as gymnasiums, restaurants and cafes, and breathtaking views of the surrounding area.

Number 3. Apartment in Beach Walk

Discover the stunning Apartment in Beach Walk, Dubai, UAE, a remarkable investment opportunity with elegant features and a prime location. This luxurious property contains 2 bedrooms and 2 bathrooms, providing a generous living space of 93 square meters. Strategically located just 350 meters away from the beautiful sea, this apartment offers both comfort and convenience.

With its exquisite design and access to various amenities, this property promises a harmonious lifestyle in one of Dubai’s sought-after areas. Priced at 3,300,000 AED, it represents an exceptional investment potential.

Conclusion

So, there you have it! A complete guide to finding the best investment properties for sale in UAE. Who doesn’t want to invest in a booming real estate market that offers high rental yields, incredible infrastructure development, and a wide range of property options? Be it the luxurious Palm Jumeirah or the lively Downtown Dubai, you just can’t go wrong with any investment in the UAE. Happy investing!

Want to know more? Visit https://emirates.estate/.

The venerable small self-administered scheme (SSAS) has been with us as a pensions option for well over 50 years now.

It was the true progenitor of self-investment in the pensions industry, leading the way to more opportunities for business people to save for later life.

Over the years, however, SSAS has become somewhat forgotten, particularly once Sipps exploded onto the scene in 1987. Sipps seized the centre stage of self-investment, though the Sipps of today look very different to those early schemes.

Decades of product development have brought the rise of the investment platform, which, although versatile and holding a vice-like grip on the majority of the Sipp market, doesn’t really encapsulate the true spirit of self-investment.

Many planners, perhaps even most, will have never dealt with a Ssas, let alone recommended its use

The challenge is that, alongside this relentless development of Sipps, the client and adviser demographics have also greatly changed. The old guard of pure advisers is slowly ebbing away and a new generation of planners are taking their place.

Many planners, perhaps even most, will have never dealt with a Ssas, let alone recommended its use.

Is SSAS even relevant in today’s world of financial advice?

Yes, I say, absolutely – perhaps now more than ever.

The entrepreneurial self-investment capability still has a solid place within the advice sector, particularly to meet the practical needs of small and medium-sized enterprises – in other words, business-owning clients, who will be on virtually every planner’s books.

Loanbacks – where the scheme lends up to 50% of the scheme value to the sponsoring employer – are highly attractive to business owners

One of the key roles SSAS can play is the opportunity to associate the client’s business as a sponsoring employer. This unlocks that wonderful SSAS specific feature: the loanback.

Loanbacks – where the scheme lends up to 50% of the scheme value to the sponsoring employer – are highly attractive to business owners. This gives access to low-cost funding that can generate business expansion.

There are, of course, rules, or tests, to ensure these loans are compliant with HM Revenue & Customs stipulations, though these are considerably less onerous than the typical lending process deployed by most institutional lenders.

When Sipps began to rule the roost of self-investment, up until around 2012 with RDR, and most certainly from 2016 onwards with the introduction of provider capital adequacy rules, they were the go-to option for anyone looking at non-retail investment solutions. One of the most popular avenues of that time was investment in private company shares.

SSAS will be around for a long time yet. However, I acknowledge it isn’t as popular as the Sipp and has a much smaller target market

These non-standard investment solutions no longer exist in the Sipp world – we could even regard them as extinct.

With SSAS, however, many non-retail asset classes can still be chosen. Furthermore, even when rare Sipp-based private share investment proposals are available, SSAS and loanback can often combine to offer a robust alternative solution.

All sounds great, right? So, why my concern about SSAS extinction?

I believe SSAS will probably be around for a long time yet. However, I acknowledge it simply isn’t as popular as the Sipp and has a much smaller target market. And so, as those advisers familiar with SSAS head into retirement, it’s vital the next generation understand and embrace the product and its many unique capabilities.

For me, it’s a perception thing – SSAS is indeed a ‘legacy’ product. Many of the new generation of advisers weren’t alive when it came into being. Amazingly, many weren’t even around for the advent of Sipps.

Let’s re-think, embrace and celebrate SSAS and the long future it clearly has ahead of it

Perhaps I am being unfair here, though it does feel at times like some people are conflating the legacy feel and age of SSAS with it being obsolete. Equally likely, it’s the perceived complexity of SSAS that’s an issue, particularly in contrast to the hyper-evolved offshoot of those first Sipps: the platform.

Ultimately, clients using SSAS are taking on a more involved role as trustees, with key decision-making responsibilities. Perhaps this alone creates a fear of things going awry.

Nevertheless, when we truly understand its capabilities, it’s hard to draw any conclusion other than, actually, SSAS is absolutely suitable for a segment of today’s clients. And with client outcomes at the heart of the decision-making process, the right solution should always trump other factors, like inherent bias.

The key for the latest generation of advisers and planners is to ensure they obtain the right support structure from the provider they use for SSAS. This includes receiving technical guidance that removes complexity, along with gaining added confidence when recommending SSAS where suitable for client needs.

So let’s re-think, embrace and celebrate SSAS and the long future it clearly has ahead of it.

Matt Storey is head of business development at @sipp