With so much fearmongering surround the Brexit both before and after, what exactly has been happening. The majority of politicians and financial experts were trying to tell us; it was the end. Now it appears the nation may not even leave. So what has happened since June? Things haven’t ended up as badly as first anticipated.
Property is still in demand
Although London’s housing market is completely unique in comparison with the rest of the nation, house prices have not fallen post Brexit. A major concern was seeing a potential fall in property value and investment, but if anything it has gone up. London has a greater pull than anywhere else, but value’s across the nation have remained very steady, with Manchester, Sheffield, Leeds and Liverpool seeing an average increase of 3.1%. The capital saw Chinese investment go up by around 30-40%, with investors seeing it as a ‘long term project,’ with such huge potential ROI from London property. There has been tremendous faith from overseas investors as they see the UK coming out of the Brexit even stronger.
There have also been record-low borrowing rates, with the UK’s benchmark going to a low of 0.5%, just weeks after the referendum. This has undoubtedly been a contributing factor in property investment.
Drop in the pound hasn’t been all bad
For all holiday goers, it has only been bad news. But overall the fall in the pound has actually helped strengthen the economy.
The nation has become much more competitive on a global sale. Without any EU restrictions, exports with the US and China have flourished. Although there is still the possibility of a recession, currently it seems very unlikely. People haven’t stopped spending. The easiest way to see a recession, is in a fall in retail and other luxury spending. When money is short, these are among the first things to be cut. However, sales have barely fallen and ‘high-street shops’ are continuing to do very well. TSB said that any potential lull was barely ‘visible.’
Apart from the obvious impact on trade, other economies which have been struggling could see a boost after the fall in the pound. This could see Inflation come down which has been an ongoing issue. Data relating to consumer prices showed that despite a month over month decline in CPI by -0.10%, on an annualised basis, the headline figure increased by 0.60%, marking the fastest pace since November 2014. This still, however, isn’t what the Central Banks are targeting (2.00%) but we can see good progress being made.
After the referendum in June, the main issue was regarding the populations spending. There were massive concerns surrounding potential business investments, with doubt the main reason for investors to be nervous. Thankfully nothing has been affected too badly. With the dust, having settled temporarily, the nation might not even head out of the EU. Timelines have been adjusted and relatively established. The nation has managed to avoid the catastrophe that was predicted, the devaluation in the pound might have seemed disastrous, but if we do decide to leave the EU it could lead the nation towards a more rounded well balanced economy, without the restraints of Europe.
About the Author
I am a freelance journalist, who studied Business at Sheffield University. Now based in London I produce content online across a variety of different topics.