UK Household Wealth Shrinks By 10% Since Brexit Vote

Financial experts seemingly cannot agree on what the Brexit means for the average UK household. New research seems to indicate the tally is not positive by any means. The combined wealth of UK households accounts for a US$1.5tn deficit, all of which is a direct result of the Brexit vote outcome. With the Pound Sterling dropping 15% in value during that period, hardly anyone expected anything different.

Brexit Causes Huge Household Wealth Decline

The past twelve monthss have not been fun for UK households. Not only did the vote to leave the EU pass with flying colors, but the Pound Sterling went down a slippery slope. As a result, the national currency lost 15% of its value, ensuring UK households have less purchasing power than before.

This also marks a new record for the United Kingdom, as they are now in the top six of countries with household wealth declines. Mexico, Egypt, Russia, Ukraine, and Argentina ranked higher, but the margins are minuscule. But the most worrisome outcome is how this deficit results in a 10% household wealth decrease for the United Kingdom, which is a very steep margin.

With no clear exit strategy in place, it is not unlikely to see these numbers grow even worse in the coming months. Exit talks between the UK and the EU won’t take place until the end of Q1 2017 at the earliest. This creates a very uncertain outlook, with investors concerned over their assets. More market volatility is n the horizon, which may send the Pound Sterling plummeting even further.

But the United Kingdom is not the only country suffering from this financial uncertainty. The global wealth numbers increased by just 1.4% in 2015, indicating a far greater underlying problem. One positive point is how this number is perfectly in line with the global population growth. Then again, it is always better to have wealth grow a lot quicker than the number of people on this planet.

All of these factors eventually contribute to the growth of alternative financial solutions. Consumers, investors, and traders are looking for ways to hedge against future financial volatility. Very few options can help them achieve that goal right now. Precious metals are always a favorite option but do not discount the amount of money being invested in Bitcoin as of late.

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About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.