Brexit ... what does it mean for me?
Adam Waller, Head of Conveyancing at Graham & Rosen discuss Brexit, and what it means for you.
The UK public have named a Ship “Boaty McBoatface” and voted to leave the EU. Just as the crew of that ship face life on “Boaty” we have to face life outside of the EU. As an R.E.M. song goes “it’s the end of the world as we know it”. But how will it affect you? It will take time before we know the full effects but here are some of things you may be thinking about now.
What about my summer holiday?
The pound is worth less than last year so you will need more money abroad. An average family will need to find about a further £65 per week. The difficulties of buying euros will be short term but you are likely to be restricted to buying no more than £1K of euros. We are still an EU country until 2018 so you can travel freely throughout the EU and use the EU passport holder lane. You still benefit from free emergency health cover in the EU, but travel insurance may still be worthwhile.
What about house prices?
Some buyers are pulling out over negative equity fears or over concerns for their job security and interest rates. Housebuilders are at risk with demand and prices likely to fall. Auditors KPMG expect a 5% drop in prices in the coming months. Despite small issues down south our local market remains strong with good demand backing up prices for now.
With a reduction in interest rates to 0.25% there may be opportunities for buyers. Fixed rate mortgages may follow rates dropping below 2%. Falling prices and falling interest rates may be the break first time buyers need to get on the property ladder. But be realistic with borrowing – rates will rise again.
Will fuel prices be affected?
Oil is priced in dollars so as the pound loses value against the dollar prices at the pumps will go up. The government also recently hinted at an increase in fuel duty. For now, oil is still cheap and its prices are still falling. This should keep the prices down at the pumps for a few months and we are some way off the £1.50/litre price of 2012.
So what happens next?
The Politicians have two years to negotiate our break up and what they agree will impact on all of us in some way. There are a lot of things that could change but for now we just need to “Keep Calm and Carry on.”