Since the UK voted to leave the EU on the 23rd June, there has been lots of speculation about what will happen to the country’s economy.
In July, one month on from the EU Referendum result, the annual inflation rate rose to 0.6% however the Office for National statistics (ONS) stated that there was nothing to suggest that this was as a result of the referendum. This was likely due to rising fuel prices. The pound has decreased in value since the referendum though, and this can be directly attributed to the Brexit result.
Pensions, Savings and Investments
Bond yields have fallen since the 23rd of June which has reduced the amount of income available from pension investments. The decision by the Bank of England to cut interest rates to 0.25% has also had an effect on this. The weaker pound however means that overseas investments are actually worth more in sterling. The Bank of England’s decision to cut interest rates is designed to stimulate the UK economy, though many are unsure about how the reduced rate will directly affect them. We looked at how a lower interest could impact on your savings and investments.
Property Market
Although the housing market in the UK is slowing, house prices do continue to rise. The Royal Institution of Chartered Surveyors does expect the housing market to pick up again over the course of the next year. Homeowners and potential buyers are becoming confused about the state of the market, as leading building societies are publishing conflicting information. As stated on the BBC website:
“The Halifax said UK house prices fell 1% in July compared with June, while the Nationwide said prices rose by 0.5% during the month. Annual house price inflation is 8.4% according to the Halifax, and 5.2% according to the Nationwide”.
You can read an in depth analysis of the UK economy post-Brexit on the BBC website, and if you would like to discuss your finances with us please get in touch.
