What Brexit Means For You And Your Money

brexit

What is Article 50?

Firstly, article 50 is only 250 words. Article 50 says: “Any member state may decide to withdraw from the union in accordance with its own constitutional requirements.” As that has happened, Britain will have to notify the European council of its intention to leave. When article 50 is activated by Britain, we will have 2 years to negotiate a new deal to replace the terms of EU membership. As David Cameron has stepped down as Prime Minister, the next elected PM will be in control of invoking Article 50.

What will be included in the negotiation with the EU?

Trade tariffs

Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. Therefore if there are major increases to Britains trade tariff, goods are about to become more expensive

Migration

This is about whether people who aren’t from Britain will still be able to come to work and live here. So many factors have to be considered when a decision is made on immigration, especially because of how it affects the economy. Nigel Evans has now stated after the result of the EU referendum that there’s no promise of immigration drop.

Access to the European market 

The EU currently runs as a single market. A single market means free movement from one EU member country to another of goods, people, services and capital.

As Britain is the first country to leave the EU, Britain may get a good deal. However, Britain will not be able to have the same full access to the single market otherwise it rules out one of the biggest benefits of being in the EU. If other EU members of the EU see that Britain still has many of the same benefits as they did before choosing to leave, other countries in the EU may choose to leave too which is not what the EU want.

House prices

There’s likely to be a decline in house prices as foreign investors may opt out of property investment in Britain while our economic future is uncertain. This uncertainty can also cause residents in Britain to be hesitant to buy property. Some analysts have mentioned that London will be hit the hardest as a result of the property market in London being more volatile due to high interest from foreign investors.

In the event that London and other parts of Britain become less appealing to live in followed by the announcement of the Brexit, then first-time buyers will benefit as house price inflations become stagnant. However, mortgage costs are likely to increase.

Do I need a new passport ?

Passports will continue to be valid until we leave the EU completely. This gives us a little over two years to still use them in the same way. BBC reports that it will be presumed that we will receive a new style of passport upon exit.

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