You are here: Home - Mortgages - Buy To Let - News -

House prices and higher inflation to hit consumers post-Brexit

0
Written by: Hannah Uttley
24/06/2016
Consumer recovery 'looks set to fade' as a vote to leave the European Union is likely to see exchange rates push inflation and house prices higher, economists have warned.

Analysis published by the Centre for Economic and Business Research (Cebr), said that business activity and job security looked fragile as news hit the markets that the UK had voted for a Brexit.

Despite this, Cebr said that while sterling was increasingly fragile, pressure on inflation could be offset to some extent by further interest rate cuts.

However, even if consumer expenditure continues its upward trajectory over the next 18 months, the Cebr said growth will only average about half the 2.8% seen in 2015.

It’s also unclear whether this will be a short-term factor, the Cebr said.

“The decision of the UK electorate to leave the EU in yesterday’s referendum has already had far reaching effects on financial markets and the uncertainty caused by the vote will no doubt feed into the real economy over the coming weeks and months,” it said.

“Even under a vote to remain we expected a notable slowing of growth in the household sector as inflation recovered. With exchange rates set to push inflation higher, the consumer recovery looks set to fade.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week