They are part of a growing number of individuals selling their homes, depleting their savings, and taking on significant debt to have a baby as NHS funding for IVF treatments declines.

In 2012, the NHS funded 40 per cent of IVF treatment cycles in the UK. By 2022, this had decreased to 26 per cent, reflecting tighter health service budgets. According to the Human Fertilisation and Embryology Authority (HFEA), the NHS funded 20,555 out of approximately 80,450 cycles in 2022.

Jodie, a 34-year-old school administrator from Sheffield, was informed in 2019 that IVF was her only option to conceive after multiple procedures to repair her fallopian tubes. Despite national guidelines entitling women under 40 to three free rounds of NHS treatment, the couple were ineligible because Steve has a daughter from a previous relationship.

“When we learned we would have to pay privately, we sold the house to fund it. Our money was tied up in the property, so selling it was the only option,” Jodie explained.

The couple anticipated high costs but raised only about £6,000 from downsizing—falling short of the £10,000 needed for their first cycle. Family and friends helped cover the shortfall.

In early 2019, the strain led Jodie to attempt suicide. “I was at rock bottom. The fear of running out of money was overwhelming,” she said.

During an IVF cycle, an egg is fertilized in a laboratory and then returned to the womb, taking four to six weeks per cycle.

The chance of a live birth from each embryo transferred during IVF is around 25 per cent, often necessitating multiple cycles. Patients denied NHS treatment must navigate a private sector criticized for poor fee transparency and unexpected costs that can significantly increase bills.

Funding Cuts

The National Institute for Health and Care Excellence advises offering women under 40 three IVF cycles if they have tried to conceive for two years or if tests indicate IVF is necessary. Women aged 40 to 42 are recommended one cycle.

However, these guidelines are not legally binding. Each integrated care board (ICB) in England sets its own eligibility criteria, meaning availability varies by location.

One ICB might offer three cycles, while another nearby might offer only one. Eligibility can depend on age, weight, and smoking status. Over 75 per cent of ICBs in England do not fund IVF if either partner has any living children. The average age for starting IVF is just over 35, but in some areas, the NHS age cut-off is 34.

Jodie’s first IVF round was successful, resulting in the birth of their daughter in 2020. However, two subsequent rounds in 2021 costing £5,000 each resulted in miscarriages. The couple has spent £30,000 on IVF and fertility treatments and pays £45 a month to store remaining frozen embryos.

“I’m not ready to let the frozen embryos go yet. We need to weigh the financial impact of another treatment round on our family,” said Jodie, who documented her journey in her book I(v)F Only.

Hidden Costs

One IVF cycle can cost £5,000, excluding extras such as medication, blood tests, and embryo freezing. Medication typically costs £500 to £1,500, and daily blood tests average £150 each.

Managing these costs on a single income is challenging, especially with a 44 per cent rise in single women funding IVF between 2019 and 2021.

Private costs vary widely, with the HFEA warning of significant price discrepancies between clinics. A lack of transparency makes price comparison difficult.

Sara Marshall-Page, co-founder of the fertility website IVF Babble, noted, “A basic IVF round costs £4,000 to £8,000, excluding tests and medicine. Financial strain can be as detrimental as medical infertility.”

“Some clinics advertise ineffective add-ons to appear innovative, adding financial strain on patients,” she added.

Last year, Fertility Mapper found that a quarter of private clinics advertised IVF courses that cost 50 per cent more than initially quoted, excluding necessary procedures and tests.

The HFEA also warned of clinics selling unproven and expensive extras.

IVF Loans

Many patients resort to desperate measures to fund treatment. A survey by Fertility Network UK revealed that 14 per cent of patients sold personal belongings for IVF, 7 per cent took bank loans, and 4 per cent remortgaged.

As NHS funding declines, fertility financing through loans and payment plans is increasing.

Clare Ettinghausen from the HFEA stated, “For some, loans or insurance might be the only option to try for a baby. It’s essential that financial plans are manageable.”

Some loans charge interest only if treatment results in a birth. Companies like Gaia charge 14 to 18 per cent interest on repayments, while Access Fertility and Create Fertility offer 0 per cent interest if costs are spread over 12 months. Refunds may be available for unsuccessful treatments.

Loan eligibility criteria often resemble NHS criteria, considering factors like age and likely treatment success.

Samantha Deakin and her husband, Carl, faced severe endometriosis, leading to infertility. After being deemed ineligible for NHS funding due to her teenage daughter, they were quoted £8,000 for a private IVF cycle, rising to £10,000 with medication.

“I assumed medication was included in the initial quote, but it wasn’t. The failure of two transferred blastocysts was devastating, leading to depression,” said Samantha.

The financial uncertainty compounded the already grueling treatment, involving hormone drugs, daily injections, and invasive procedures over a four-to-six-week cycle.

After their first IVF round, Samantha and Carl spent nearly £30,000 on attempts to conceive, including various operations. They saw an advert for Access Fertility and purchased a £14,000 package for three cycles. “The costs were capped, providing financial certainty,” Samantha noted. Their son Harlow was born in May 2020.

Three percent wished they had monitored their investments more closely, ten percent regretted not increasing contributions earlier, and fifteen percent wished they had planned their retirement sooner.

So, what are the key regrets, and how can you avoid them?

One prevalent issue is inadequate savings for retirement. Under auto-enrollment, employees aged 22 and over, earning more than £10,000 annually, contribute to their workplace pension, but experts suggest that the minimum contributions are insufficient for a comfortable retirement.

According to the Pensions and Lifetime Savings Association (PLSA), a single individual needs an income of £31,300 a year post-tax for a moderate lifestyle, while a couple requires about £43,100 annually. To achieve this, starting to save early is vital. For instance, to reach a pot of £494,000, a 20-year-old needs to save £298 a month, whereas a 40-year-old needs to save £840 monthly.

For a comfortable retirement, defined as £43,100 a year for a single person and £59,000 for a couple, the required pot is £794,000, with respective monthly savings of £479 for a 20-year-old and £1,352 for a 40-year-old.

Many workers are not on track for this moderate lifestyle, with only 20 percent prepared adequately. Incremental increases in contributions during pay raises can significantly boost your pension pot, suggests Helen Morrissey from Hargreaves Lansdown.

Paying Excessive Fees

High fees can erode your pension savings. Fund management, pension administration, and financial advice can all add up, affecting your investment returns. Annually, Brits pay an average of 1.9 percent for advisory and portfolio charges, according to the Financial Conduct Authority.

It’s crucial to compare fees from different providers. Vanguard offers a competitive 0.15 percent platform fee for a £100,000 investment. Interactive Investor charges a flat fee plus transaction costs, potentially saving more for larger pension pots.

Assess your investment strategy periodically. Many workplace pensions automatically shift investments to safer assets like government bonds as you near retirement, a process called de-risking. Opt for a higher growth fund or adjust your retirement date if you prefer.

Lack of Planning

Proactive planning is essential. Begin considering your retirement finances at least ten years in advance. Factor in your workplace pensions, savings, investments, and state pension to estimate your retirement income, advises Gianpaolo Mantini from Saltus. Downsizing your home may also free up additional funds.

Planning how you’ll spend your time in retirement is equally important, reducing the risk of boredom and enhancing quality of life, Mantini notes.

Withdrawing Money Prematurely

While you can access your pension from age 55 (57 from April 2028), early withdrawals can have long-term consequences. Stephen Lowe from Just Group warns against the temptation of immediate access, noting the benefits of tax-free growth if funds remain invested.

Consider taking out your 25 percent tax-free lump sum in stages. For a £400,000 pension pot, phased withdrawals can increase the total amount taken due to continued investment growth.

Leaving your pension untouched for as long as possible also has inheritance benefits. Pensions typically fall outside your estate for inheritance tax purposes, allowing tax-free withdrawals for your beneficiaries if you die before 75.

Some individuals prioritize using other savings or selling assets before accessing their pension to maximize these benefits, notes Jason Hollands from Evelyn Partners.

Regaining Control

Taking charge of your pension can yield significant savings. Robert Trott, 54, reduced his annual pension management fees from 1.88 percent to about 0.22 percent by switching to a low-cost fund through Interactive Investor. He now saves thousands annually and encourages others to consider managing their investments.

Understanding the fees and investment strategies associated with your pension can significantly impact your retirement savings and lifestyle.

About £3. I generally don’t use cash anymore; I prefer contactless payments.

What credit cards do you use?

I mostly rely on my debit card but use my credit card for larger purchases, like my recent £250 pair of spikes. I always pay off the bill immediately.

Are you a saver or a spender?

I strive to save, but I lean more towards being a spender. I love kitchen appliances; my latest purchase is a £500 Nama J2 juicer. I’m now hunting for the perfect coffee machine.

Do you own a property?

Yes, I bought a three-bedroom end-of-terrace house near Knutsford in Cheshire for about £360,000 last year. I plan to extend the bathroom by knocking through one of the walls. I see myself living here for the next five years, though I might need more space if I start a family.

Are you better off than your parents?

Probably. I grew up in Leeds with six siblings. My mother is Jamaican and my stepfather is from Barbados. My family owned a restaurant called Paradise in Leeds, but now my mother leads a cleaning team, and my stepfather is a forklift truck driver.

How much did you earn last year?

Enough to maintain my bouji chocolate-brown sausage dog, Max, whose upkeep costs me a few thousand pounds annually. This includes fresh food, collars, and toys, as well as a little pool for summer.

What was your first job?

My first job was working as a waitress at my parents’ restaurant. I was good at it and earned a lot of tips. My athletic career began to take off in my late teens, especially after winning my first title at the 2015 athletics World Championships and securing sponsorships post-2016 Rio Paralympics.

When did you first feel wealthy?

After qualifying for UK Sport funding around 2015, which provides about £28,000 a year tax-free. This allowed me to train without financial worries, supplemented by sponsorship money.

Have you ever worried about how you were going to make ends meet?

Yes, especially during university. I often had to borrow money from relatives to cover food or going out.

What has been your most lucrative work?

Television appearances have been quite profitable. The most lucrative was a Tesco social media advert for their Christmas meals, which paid about £20,000 for a couple of hours of work.

Do you invest in shares?

Not right now, but maybe in the future.

What’s best for retirement — property or pension?

Both are important, which is why I’ve started a private pension.

What has been your best business decision?

Participating in TV shows has significantly increased my exposure and social media following, making it easier to get sponsorships. Winning Celebrity Masterchef was tough but worthwhile. My mum and I hope to write a cookbook together someday.

And your best investment?

The KitchenAid stand mixer I bought for about £250. It’s great for baking, which helps me relax and serves as practice for Masterchef. I enjoy baking chocolate birthday cakes for family and friends.

What about your worst investment?

I’ve bought many dresses worn only once. My worst investment was likely a pair of £800 three-inch Valentino heels, which I rarely wear due to balance issues caused by my MS.

What’s your money weakness?

Trainers. I have over 20 pairs, although I only regularly wear five or six. I especially like Nike Air Force 1 trainers, costing between £100 and £200. I’m a bit of a Nike enthusiast!

What’s your most extravagant purchase?

I treated my mum, brother, and sister to a two-week holiday in Jamaica last year, which cost about £20,000. We stayed at the Moon Palace, and it was a memorable trip.

What’s your financial priority in the years ahead?

Saving money to upgrade to a larger home.

What would you do if you won the lottery jackpot?

I’d buy a bigger house for myself and a nice place for my mum, possibly a property in Jamaica. I’d also donate to the MS Society and St Gemma’s Hospice in Leeds.

What is the most important lesson you’ve learnt about money?

Money can come and go quickly, so always have some set aside for unexpected expenses.

HM Revenue & Customs (HMRC) recoups hundreds of millions of pounds annually in inheritance tax (IHT) on gifts that don’t meet its seven-year rule, emphasizing the importance of early gifting.

According to the rule, some gifts are tax-free if the donor survives for at least seven years after making them. If the donor dies before this period, the gift is included in their estate and may be taxed, depending on the estate’s value.

The number of estates paying IHT on gifts increased from 590 in 2011-12 to 1,300 in 2020-21, per data obtained by wealth manager Evelyn Partners through a freedom of information request.

The IHT collected on gifts surged from £101 million in 2011-12 to £256 million in 2020-21.

The seven-year rule offers relief, allowing substantial gifts, such as money for house deposits and university fees, to be tax-free. HMRC scrutinizes any gifts if it suspects tax has been underpaid or avoided.

Ian Dyall from Evelyn Partners stated: “More families are making gifts in their lifetime to reduce their estate size, as more estates become liable for IHT, and it is an increasing burden.

“Sometimes the donor does not live long enough for the estate to realize the full tax benefit. In other instances, there is a lack of awareness or misunderstanding of gifting rules.”

Inheritance tax is widely disliked, even though only about 4% of estates are subject to it. The government collected a record £7.5 billion in IHT in 2023-24, with an even higher amount expected this year. Approximately £2.8 billion was paid between April and July, up £200 million from the same time last year.

Inheritance tax is typically charged at 40% on estates valued above the £325,000 threshold. Anyone passing a family home to a direct descendant gets an additional £175,000 tax-free allowance, provided the estate is worth £2 million or less. This allowance decreases by £1 for every £2 exceeds the £2 million mark.

Anything left to a spouse or civil partner is exempt from tax, and their allowances can also be inherited, enabling couples to pass on up to £1 million tax-free.

However, gifts made within three years before death can be taxed at 40%, and those given three to seven years before death are taxed on a sliding scale, starting at 32% and decreasing to 8%. Gifts given more than seven years before death are tax-free.

Dyall noted, “It can be tricky to make lifetime gifts that are entirely safe from IHT, and suddenly facing a 40% tax bill on a large sum can be challenging for many people.

“Anyone receiving a significant gift from an elderly relative should assess the tax implications before spending it or investing it in something illiquid, like property.”

Keeping records of lifetime gifts is essential to help executors and families determine what is exempt from IHT and challenge HMRC disputes.

Nimesh Shah from accountancy firm Blick Rothenberg mentioned that people often get caught out because they delay making gifts.

“No one wants to think about death and taxes, so they postpone it. But as one gets older, surviving the full seven years becomes less likely, making early planning crucial. There’s also a common misconception that giving away an asset eliminates IHT,” Shah explained.

Small gifts that are exempt from IHT can be made. For instance, one can give away £3,000 annually without it becoming taxable later. Regular gifts are also allowed, provided they do not impact the donor’s standard of living and are taken from income, not savings or capital.

A parent can give up to £5,000 tax-free to a child or stepchild for a wedding or civil partnership. Grandparents can gift £2,500, and anyone else can give £1,000.

This cap, reviewed quarterly and likely rising again in January, is the maximum suppliers can charge per unit of gas and electricity on standard variable tariffs.

Currently set at 5.48p per kWh for gas and 22.36p per kWh for electricity until September 30, the average dual-fuel household paying by direct debit will see costs around £1,568 a year. From October, electricity will cost 24.5p per kWh and gas will be 6.24p per kWh.

Wholesale energy prices are the reason for the increase, according to the consultancy Cornwall Insight.

Should You Get a Fixed Energy Deal?

Before the 2021 energy crisis, consumers frequently switched suppliers and opted for fixed deals. The crisis, exacerbated by a European gas shortage and Russia’s invasion of Ukraine, saw 28 energy suppliers go bust.

During the crisis, the government introduced a price guarantee, capping bills at £2,500 a year from October 2022 to July 2023. With falling bills, variable rates have generally been cheaper than fixed deals until now.

Ben Gallizzi from Uswitch suggests evaluating available deals as the cheapest fix is £149 less than the expected price cap from October, potentially saving more money through January 2025 amidst anticipated price rises.

Uswitch lists ten fixed energy deals cheaper than October’s £1,717 price cap. The most affordable, Outfox the Market’s Fix’d Dual Aug24 v3.0, costs £1,568 annually with a £25 per fuel exit fee.

Ovo Energy’s 1 Year Fixed 19 August 2024 is at £1,627 a year, available exclusively through Uswitch and Confused, with a £50 per fuel exit fee.

Consider that some fixed deals could result in higher payments until October 1, and the risk of the price cap falling in subsequent months.

What Is the Long-Term Forecast?

Consultancy BFY forecasts Ofgem’s price cap rising to £1,720 in January and April, then decreasing to £1,690 in July 2025, with an average annual bill of £1,702 if predictions hold true.

Seek deals without hefty exit fees to switch if predictions overestimate future price hikes. Octopus and Co-op Energy offer £1,628-a-year deals with no exit fees.

Gallizzi advises examining the price, duration, and exit fees of fixed tariffs to ensure the deal fits your needs.

Ofgem’s ban on better deals for new customers, in place until at least March 2025, aims to stabilize the market after unsustainable offerings caused supplier failures.

Are There Any Reasons Not to Fix?

Fixing at high rates and penalties for early contract exit could nullify savings. Moving house within the year also requires caution.

Switching is barred if you’ve been in energy debt for over 28 days, affecting many households, with outstanding energy debt at £3.3 billion as of March.

How Else Can I Cut My Energy Bill?

Economy 7-type tariffs offer cheaper rates at off-peak times, suitable for night shift workers and those with electric storage heaters or electric vehicle owners.

Octopus Energy’s Agile Octopus alerts users via smartphone when energy prices drop. Requires either an Economy 7 meter or a smart meter.

EV owners benefit from overnight charging at reduced rates, with Ovo Energy offering 7p/kWh, making a typical 60kWh car battery charge cost £4.20 compared to £14.70 under the October cap.

Can I Get Help With Rising Bills?

The chancellor, Rachel Reeves, has abolished winter fuel payments for pensioners except those on pension credit. Eligible families often miss out on this benefit, estimated at 880,000 by the government.

Pension credit recipients receive automatic cold weather payments of £25 per seven-day period of extreme cold between November 1 to March 2025.

Households can reduce bills through energy efficiency improvements. The Great British Insulation Scheme offers free insulation to those with energy performance ratings D or below and within certain council tax bands.

Insulating your home, especially the loft, can save significant amounts yearly. Apply through gov.uk, and your energy supplier will contact you for an assessment.

Turning her dog-walking hobby into a money-making venture, she aimed to bridge her income gap before claiming her pension.

Simpson, 57, who has a defined benefit pension from her 30 years with the NHS, gets a guaranteed income but only after turning 60. She also qualifies for the full state pension of £11,500 at age 67.

Until then, Simpson and her girlfriend, Saint Ananda, 54, began using the Rover app in 2022 to offer dog-sitting services. Rover connects dog owners with verified pet sitters.

The couple enjoys spending time with dogs but didn’t want the long-term commitment of pet ownership. This compromise has been lucrative: Simpson earned £1,500 in her first year and is on track for £6,700 this year. “I’m good with dogs, they like me,” she said. “I like it because it’s a caring job, looking after an animal.”

Charging £35 for an overnight stay (£38 during peak times), Simpson sets her own prices, though Rover suggests rates based on local averages. The app takes a 15% commission per booking.

While business is steady — with bookings up to five nights a week — not all dogs behave perfectly. “One dog bit both of us and urinated on our laptop, costing £80 to fix,” Simpson noted. “Another dog urinated on an Axminster rug, encouraging other dogs to do the same. We’ve also had dogs use the spare room as a toilet.”

Simpson advises investing in quality garden fencing to prevent escapes. “Keep an eye on small dogs; they can find a way through small gaps,” she warned.

Dog walking can be a profitable endeavor. According to the National Association of Pet Sitters and Dog Walkers, an hour-long dog walk costs between £15 and £20 in London, £9 to £14 in the Midlands, and £8 to £13 in Yorkshire and the Humber.

Other apps like Pawshake and GoWalkies can also be used for dog walking and sitting services.

Before starting, confirm if a licence is required by checking with your local council. Licence fees vary: Lambeth charges £65.26 annually for walking up to two dogs, Bromley charges £200 for walking four or more dogs, Manchester’s boarding licence costs £195, and Birmingham’s costs £323 annually.

It’s important to have insurance to cover potential issues. Public liability insurance protects against injuries or property damage caused by dogs in your care. It also covers injuries to the dogs, if they get lost, or if they die. Public liability insurance with £2 million cover averages £54 annually, according to NimbleFins.

Income from dog walking may be taxable depending on earnings. Everyone has a £1,000 trading allowance annually, meaning £1,000 in gross income (before expenses) is tax-free.

Beyond this, declare income through self-assessment and pay tax at your standard rate. The personal allowance is £12,570, enabling earnings up to £13,570 tax-free if there is no other income.

How to Choose a Dog Walker

Ensure the dog walker or sitter you hire is experienced and trustworthy.

Seek recommendations from friends and family. If using an app, review the walker’s ratings.

Arrange a meet and greet, ask about their dog-handling experience, and request to see their insurance and any necessary licences.

Bring your dog to meet the potential sitter or walker. If they don’t get along, find another option. Ensure the walker is aware of any medications or allergies your dog has and provide vet details.

Christopher Snowdon, head of lifestyle economics at the Institute of Economic Affairs

The failure of Denmark’s fat tax, introduced in 2011 and repealed 15 months later, should have dismissed the notion of using taxes to combat obesity.

This brief experiment resulted in inflation, lower wages, unemployment, cross-border shopping, and heavy bureaucracy. It was highly unpopular across political lines, and the Danes were relieved to see it go.

Since then, Denmark has also repealed its tax on sugary drinks, Norway has eliminated its sugar tax, and Finland has removed taxes on confectionery, chocolate, and ice cream.

The current argument for taxing unhealthy food is that it will force the industry to alter product ingredients, similar to the ‘success’ of the sugar tax. But what’s the success? Childhood obesity rates have increased since the sugar tax came into force in 2018.

Efforts to reformulate food have repeatedly failed as consumers reject the new products, and there’s no sign of this changing. Anyone who has tasted an artificially sweetened biscuit can attest to this.

What exactly is ‘unhealthy’ food? When Denmark’s fat tax was enacted, saturated fat was the dietary villain. Later, it was sugar. Today, it’s ‘ultra-processed food,’ a broad term that includes everything from hummus to wholemeal bread, but not sugar or fat themselves.

It’s unwise to use government force to impose such standards on the public. Remember the outcry in 2012 when David Cameron’s government proposed VAT on hot pasties?

A ban on volume discounts for ‘junk food’ deals was repeatedly postponed due to the backlash it would provoke, especially from budget-conscious shoppers during high inflation.

Raising living costs to discourage people from eating their preferred foods is unpopular. Some medical professionals support it, but they don’t face re-election like politicians do, as Danish journalist Kristian Madsen noted in 2012.

Yes

Tam Fry, chairman of the National Obesity Forum

The sugar tax’s remarkable success supports the idea of a similar fat tax on unhealthy foods.

The soft drinks industry levy (SDIL), introduced in 2018, pushed manufacturers to reduce excess sugar—a major obesity risk factor—in their drinks, or face a tax.

Despite initial criticism, the levy succeeded. While a few brands retained their original formulas, most introduced lower-sugar options.

It was beneficial for all. Customers increasingly bought the cheaper, low-sugar drinks, making the SDIL effective within a year. In five years, about 45,000 tons of sugar were removed from UK soft drinks, meeting its goal of combating childhood and adult obesity.

No similar tax exists for high-fat, high-sugar, and high-salt foods like crisps, chocolate, and biscuits—but there should be. Reducing these levels in foods is more challenging than removing sugar from drinks and would likely take longer but is necessary due to the severe obesity problem.

One proposed alternative is higher VAT on unhealthy food, but this would directly impact consumers. Instead, a fat tax akin to the sugar levy would compel the industry to act.

For over a decade, the food industry has promised to meet nutritional standards yet missed every self-imposed deadline, especially for salt levels. New levies would signal that discussion time is over—action is needed.

Typically, it’s suggested that younger investors embrace higher risk due to their extended horizon to weather market fluctuations. Conversely, older investors, with the need for accessibility in the near future, are advised to avoid such risks.

This advice seems questionable on several fronts.

If you’re just starting out with a relatively small investment, any loss can be significantly discouraging, potentially deterring future investment endeavors.

Further, suggesting high-risk tolerance to novice investors who lack substantial market knowledge and time to manage complex portfolios seems imprudent.

Advising newcomers to venture into high-risk assets is akin to having a beginner pianist perform Mozart’s Rondo Alla Turca; it’s more sensible to build proficiency gradually.

On the flip side, older investors might have greater investment knowledge and more time to manage their portfolios, especially post-retirement. Directing them exclusively toward low-risk options could be limiting.

Conventional advice correlates risk aversion with increasing age, symbolized by a downward sloping line on a risk-age chart.

My initial investment years adhered to this advice, with my riskiest choice being an investment trust in frontier markets. The experience, though educational, didn’t yield favorable financial returns compared to a standard tracker fund.

Perhaps, instead of this linear approach, a bell curve model might be more fitting. Start with caution, increase risk with experience and wealth, and then reduce risk, but not entirely, upon nearing retirement.

For new, young investors, starting with a low-cost ready-made portfolio via major investment platforms might be prudent. These portfolios, comprising various tracker funds, balance risk across assets like equities, bonds, and property, providing stability. A regular small investment, such as £50 monthly, can set a foundation.

At my mid-thirties, it’s time according to this bell curve model to increase risk. My current equity-focused portfolio is globally diversified but could benefit from further diversification within investment trusts focusing on regions like Asia and India, without overloading on risky funds.

Eventually, introducing bonds into the portfolio can offer a counterbalance to equities, beneficial both in retirement for regular income and for younger investors through reinvestment opportunities.

Traditional strategy often advises exiting the stock market by retirement to avoid risking savings. However, this might be the time to apply expanded investment knowledge and engage in hobbyist investing, exploring individual stocks.

Therefore, consider individualizing your risk strategy. It’s not solely about age; it involves your knowledge, experience, and the effort you’re willing to invest. Your investment journey might not align strictly with age-based advice and should cater to your personal growth curve.

Her approach involves purchasing former council homes or Victorian terraced houses requiring renovation and significantly increasing their value. While three years ago she paused her property acquisitions due to overpricing, she now perceives the market as turning favorable.

“Currently, it’s an excellent time to expand my portfolio,” said Edwards, 40, from Oswestry, Shropshire. “When many landlords are exiting the market, buying opportunities arise.”

Defying the general trend of landlords selling more houses than buying in the past eight years, Edwards continues to invest. There was a 44% drop in homes available for rent in Britain from May 2016 to the same month in 2021, as per estate agents Hamptons.

Forecasts predict the market will lose another 35,000 privately rented homes this year. The Office for National Statistics reported an 8.7% increase in rents in England over a year, with April’s average reaching £1,301 per month.

Aneisha Beveridge, head of research at Hamptons, noted that tax and regulatory changes have driven some landlords out and deterred new investors.

Rising mortgage costs have exacerbated the situation. Current remortgaging landlords face an average fixed rate of 5.3% for buy-to-lets, up from 3.5% in 2019, according to Moneyfacts.

Monthly repayments on a 25-year £250,000 mortgage have risen to about £1,500 from £1,250, which translates to an extra £3,000 annually. Though many landlords use interest-only mortgages, the higher costs mean many fail affordability tests crucial for obtaining a mortgage.

However, Paragon Bank research reveals that 37% of portfolio landlords (with four or more properties) aim to increase their holdings this year, driven by strong rental demand or retirement income plans. We spoke with three investors for their success strategies.

‘I seek the ideal tenant’

Edwards started her buy-to-let journey in 2021. Following her brother and father’s deaths from cancer two years earlier, resulting in debt from her father’s treatment, she needed financial stability. She left a communications job to manage the family construction business but found herself without a steady income.

“With £50,000 savings but no wage, I had to find a way to generate regular income,” said Edwards, whose daughter, Florence, is nine. “I researched property investment strategies online and consulted other investors.”

Edwards employs the BRRR strategy: buy, refurbish, refinance, and rent out. She targets undervalued run-down properties, spending up to £25,000 on renovations before letting them out.

By remortgaging at the newfound higher value, Edwards releases equity, recovering most of her deposit. She aims to boost a property’s value by 20% post-refurbishment.

Focusing on Shropshire towns and nearby Wrexham, Edwards purchased three properties using bridging finance and two more via buy-to-let mortgages and equity released from other properties. Her construction business developed the remaining properties with development loans.

Her latest buy-to-let is a £200,000 three-bedroom Victorian mid-terrace in Shropshire, intended for conversion into a five-bedroom house of multiple occupancy (HMO), expected to earn £2,500 monthly rent.

“Most of my tenants are immigrants on five-year work visas, which ensures long-term tenancy,” she said.

“Many work for the NHS and have undergone extensive background checks, making them ideal tenants who are keen on building good credit records. Despite their reliability, they often face rental challenges due to landlord prejudices.”

Generating about £5,000 monthly profit, Edwards attributes her career shift to buy-to-let for transforming her life, claiming it shows other women how to achieve financial independence.

‘I purchase properties others avoid’

Thomas Balogun, 41, from Essex, focuses on properties with significant structural issues, such as subsidence or roof problems, often available at discounted auction prices. “I seek those with substantially lower market value and enhance them significantly,” he explained.

Balogun sources multiple building firm quotes to estimate costs and includes budget for extensions for added rental value. He calculates potential profitability to ensure the project covers mortgage costs.

Rising borrowing costs pose a challenge, with landlords finding rents insufficient to cover new mortgage rates. Balogun typically starts with bridging loans, transitioning to standard mortgages within nine months after renovations that increase property value. Shawbrook Bank’s Daryl Norkett confirms this as a common portfolio expansion tactic among landlords.

‘I established a limited company to maximize profits’

Recent tax changes have complicated profit-making for landlords. Previously, buy-to-let owners could offset all mortgage interest against rental income before tax; now they can claim only 20% tax relief on finance costs.

Owning property through a limited company remains advantageous due to corporation tax liability replacing income tax, allowing full mortgage interest deduction before tax calculation. This also means easier affordability checks and larger loans from lenders.

According to Paragon Bank, the percentage of property purchases through limited companies surged from 4% in 2014 to 79% by 2023, reaching 82% this year.

Davinder Sanghera, 36, entered the buy-to-let scene in 2016 while working as a trader. Transitioning to a full-time landlord after professional training, she set up a limited company to benefit from favorable tax rules.

“All my HMOs are under the limited company,” Sanghera said. “Thus, I can deduct full mortgage interest from rental income before tax. This isn’t possible when properties are personally owned.”

Sanghera acquires affordable two and three-bedroom terraced houses in the West Midlands, often adding rooms by extending ground floors or lofts for HMO configurations, renting to individual tenants.

Living in south Manchester with her partner Chris Ribeiro, 34, and their four-month-old daughter Inaya, Sanghera’s seven properties used to earn £1,000 to £1,500 monthly post-tax. After mortgage rate increases on two homes, earnings have dropped to about £800 monthly.

Despite this, she plans to expand her portfolio in future years when parenting responsibilities ease.