With the post-Brexit fallout, it seems like the world hasn’t come to an end as extreme remain voters were predicting. We all saw those memes, right? Immediate and pretty significant impacts on the economy had been predicted. But has that come to pass? To the level it was predicted, then I don’t think so. However, it hasn’t all been as smooth sailing as some might have thought. I think that leave voters knew that there would be a few tough years ahead. But did they see things to happen as they have so far?
Of course, there are some economic issues that have arisen. Let’s talk about the fall of the Euro for one thing. The lowest it has been for decades. Though it is slowly rising now, it is just not as fast as people had predicted. The economy as a whole hasn’t done as bad as predicted. In the following months after the referendum, the economy grew by 0.5%. Having said that, it wasn’t as much of a rise as the previous year (o.7%). But better than the predicted 0.3%.
The thing that I think is affecting is the most is a decline in confidence in the small business sector. A lot of people running small businesses feel much more pessimistic about their future than ever before. So this can affect those of us that work in small businesses or run ow own. It can also affect the growth as business owners might not want to start out on any new investments, until they feel happy about the way things are going. This in turn could affect things like rental prices. Great if you are a renter I suppose, but not if your business is in the property market.
According to the Landlord insurance company HomeLet, rental prices in the UK experienced their slowest growth rate of the year, in September. This was up on the year before, but was minimal in growth when you compare it to the previous months (August and July). Even in London, which normally seems immune to most housing trends, didn’t show growth. The average rent in London in September was £1,555 compared to £1,561 the month before. While this might sound minimal, it could have greater effects for a property developers running a business. So now, in this post-Brexit economy, it seems like we will just have to wait and see. There are so many external factors at stake. In property, for instance, lots of factors will affect how things go. Stamp duty, tax changes coming next year, and mortgage rates will all play a part.
On a more cheery note, retail sales have risen, having reported to have been better than January just in the past month. So if you are in retail things are looking good. Apparently most of us haven’t been phased by the drop of the pound…
So let’s hope landlords and small businesses are just being overly cautious, with things set to pick up again soon. What do you think?
I don’t think anything can be assumed until we’ve actually left – we are still in at the moment. But my USA holiday next year is becoming more expensive every month… :/
It really is an unknown at the moment which is why I’m so worried about the future right now x