Although this is a subject I have written about before, as Brexit still enters many of our conversations I thought an update would be good. Like many I can remember thinking at the beginning of this year that finally by the end of March we will all know what’s happening. I don’t think that there were many people who believed that in August we would still be in the dark.
But what impact is this having?
It has been reported that a leading estate agent which sells and manages commercial and residential property around the world, stated that “fewer houses were sold in the UK in the first half of 2019 than at any point since the first half of 2009”. *1
But I don’t think it’s right to blame Brexit totally for this as there were major changes regarding ‘Buy to let’ properties just prior to the famous ‘Leave’ vote. I think this is a major contributing factor.
Rental amounts are also reported to have taken a hit. The biggest falls in rent have been in south-east England, where average rent has dropped from £879 to £854 over the past year. It has been reported that comments have been made, “With rents generally falling, and average wage growth above inflation, this is positive news for renters concerned about affordability,” *2
So what about the stock market?
Well, when I last recapped back in December 2018 the FTSE 100 was at 6,721.54 *3, and opened today at 7250.90 (14/08/2019), this is still down from 21 May 2018, when it reached over 7800.
The news of the pound isn’t so good as this month it did go down to a ten year low, which isn’t good for holiday makers in the middle of the prime season.
As the political situation is still largely unresolved, I have to say that I do hope that by the end of October we will have some certainty.
If you would like to discuss the above we do offer a free, without obligation consultation to discuss our advice process with you. This is so important if you are worried about the impact that the current climate may have on your savings, it’s always a good idea to air your concerns.
*1 Guardian newspaper 8th August 2019
*2 Guardian newspaper 11th April 2019
*3 Opened 11th December 2018 at 6,721.54
Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action