This is a good time to invest in properties in Britain. Property prices have taken a direct hit following Brexit.
The impact of Britain’s historic decision to leave the European Union is now making its presence felt across Britain with surveys showing a slowdown in the construction sector and a dive in consumer confidence.
The signals of a sharp economic slowdown are likely to act as a pressure point for the Bank of England and raise consumers’ expectation from it with most economists predicting a lowering of interest rates and the starting of a bond buy-back program.
According to Centre for Economics and Business Research (CEBR) and YouGov, consumer confidence index slumped by 5 points to 106.6 in July, its lowest in three years.
“The public are still absorbing the EU referendum result but it is clear that consumer confidence has taken a significant and clear dive in the month after the Brexit vote,” said Stephen Harmston, Head of YouGov Reports.
According to the survey, most people are worried about the downturn in valuation of their property.
“If homeowners’ fears over their property prices are realized then there could be a very serious impact to both the housing sector and the economy in general,” said Scott Corfe, a director at CEBR.
As per economists, an increase in consumer spending could be the best way to avoid a recession. Retailers have disclosed that the sale of ales have fallen sharply after Britain’s historic referendum. This has also been mapped in the survey.
Similarly, according to the Royal Institution of Chartered Surveyors, construction activity has greatly reduced after the vote.
Britain’s property market has taken a direct hit as a result of Brexit, with housebuilders seeing the prices of their property plunge to new lows. As a result of this, investors have also pulled out cash from commercial funds, thus forcing many projects to be left half-built and suspended.
This has had a cascading effect on the hiring by construction firms, which have also reported hiring lower full time employees.
However, according to a survey by the British Retail Consortium, 93% of retailers intend to keep staffing levels unchanged for the next three months.
Another survey has shown pay grades are stuck in a slow gear in Britain.
According to XpertHR, an online human resource firm, median pay settlements in the three months to the end of June were worth 1.8% for three months in a row. Earlier they typically hovered around 2%.
“It remains to be seen how the uncertainty around the impact of the Brexit vote will feed through to pay settlements, but we are likely to see pay awards remaining subdued for many months to come,” Sheila Attwood of XpertHR.
Categories: Economy & Finance, HR & Organization, Strategy
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