Notes How will Brexit affect your finances?
With the UK’s pre-Brexit transition period due to end on the 1st January 2021, many Brits are wondering how our exit from the EU will affect their finances. With so many variables, it’s impossible to say for sure what effect Brexit will have on our pockets, but we can make some educated guesses. Here are a few of the changes you can expect in 2021.
1. A slight rise in house prices
Many people predicted a huge fall in house prices as a result of Brexit but, so far, this has failed to materialise. Many experts have now predicted a modest rise in house prices of between 1 and 3%. Good news for homeowners but bad news for first-time buyers hoping for a bargain.
2. A small increase in food prices
The price of food is another area in which dire warnings seem to have been exaggerated. However, a small increase in the annual cost of groceries is likely as a result of new restrictions on importing goods from the continent. A recent study at The University of Warwick estimated that the average weekly food budget for a family of 4 could increase by around £5, with most of the extra cost coming from meat and dairy products.
3. More expensive holidays
European holidays are likely to become pricier for two reasons; a weaker pound and more expensive flights. Most of us have got used to the pound being relatively weak against the euro as this has been the case for well over 2 years. We should also prepare for budget airlines to raise their prices to make up for increased restrictions on travel routes. The good news is that EU rules covering compensation in the event of cancelled or delayed flights have been written into UK law, so Brits are still covered.