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Brexit uncertainty puts Brits on hold

08 August 2016

From buying a new car, moving home to booking a holiday, over a fifth of people are delaying major purchases until the impact of Brexit becomes clearer

How has Brexit affected consumer confidence?

Economy

  • Half of UK adults (50%) expect the cost of living to rise post-Brexit
  • Two fifths (40%) are worried about a recession

Spending

  • Nearly a quarter (22%) are putting-off a major purchase due to Brexit
  • More than a third (36%) will be more cautious with their spending following Brexit
  • 19% are putting off a foreign holiday, 13% are putting off buying a car and 12% are putting off moving home

Personal finance

  • One in 10 (13%) are evaluating their own finances to try to save money following Brexit
  • Nearly half (46%) feel they are going to be worse off
  • A fifth (21%) think their children’s financial prospects will be worse off

New research* from Gocompare.com suggests that uncertainty about the fallout following the UK’s decision to leave the EU means that many Brits are putting their lives on hold.

Concerned about their (and their children’s) future prospects, 36% of people said as a result of Brexit they are more cautious about their spending.  Over a fifth (22%) are delaying major purchases until the impact of the decision to leave the EU becomes clearer.

The survey of over 2,000 UK adults found that two fifths of people are worried that the UK economy will go into recession and, 30% think that they will be worse off in a year’s time.  Only 18% felt that their financial situation will be better off post Brexit and 17% thought that their children’s financial prospects would be improved.

To protect themselves against the consequences of Brexit, 16% of those surveyed said they plan to save more money, 8% plan to repay their debts more quickly.

The vote to leave the EU has also caused some people to delay a range of purchases: 19% are putting off a foreign holiday; 13% have delayed the decision to buy a car; 12% have delayed moving house.

The survey also found that many people are concerned about foreign financial services companies leaving the UK post Brexit.  Only 22% of those surveyed expect things to remain as they are, just over a fifth (21%) are concerned that foreign owned financial providers will leave the UK market.

Commenting on the research, Matt Sanders from Gocompare.com said, “Post Brexit the UK now faces an uncertain future and in the immediate aftermath of the referendum result it’s impossible to accurately predict the full consequences of the decision to leave.  Our survey suggests that many people don’t feel confident about the financial future of the UK therefore, it’s no surprise that some people are cutting back their spending and are looking to weather the potential storm by increasing their savings.    

“Just under a third of people taking part in our survey are concerned that they’ll be worse off in a year’s time.  One effective way these people can make savings on their household expenditure and financial products is to switch and save.  Using a comparison website can help stretch your income by making it easy to compare a wide range of products and services from utility providers, mortgages, mobile phone deals to credit cards, car and home insurance.  As well as switching and saving, people looking to increase their savings should make sure they take advantage of the tax-efficient savings products such as ISAs.”

For more information on switching everyday financial products and services visit Gocompare.com.

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Notes to editors:

1On 18 July 2016, Bilendi conducted an online survey among 2002 randomly selected British adults who are Maximiles UK panelists.  The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.