Brexit

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Workers in Britain face the biggest squeeze on their pay for 70 years as Brexit knocks wage growth and stokes inflation, according to an analysis of the UK’s government’s latest tax and spending plans. Picking over Philip Hammond’s autumn statement, the Institute for Fiscal Studies said real wages in the UK – pay adjusted for inflation – will still be below their 2008 level in 2021. Paul Johnson, the thinktank’s director said: “One cannot stress how dreadful that is – more than a decade without real earnings growth. We have certainly not seen a period remotely like it in the last 70 years.” His comments follows signs that the pound’s sharp fall since the referendum result is hiking the cost of UK imports and could soon be passed on to consumers. At the same time, experts say pay growth could stall as companies grapple with political and economic uncertainty.

IFS warns of biggest squeeze on pay for 70 years over Brexit | Business | The Guardian

U.K. real estate prices may be dropping at a much faster pace than official reports indicate, according to the Irish agency that manages property loans acquired from bailed-out banks. Reports since Britain’s vote to leave the European Union point to the value of land in central London declining by more than 10 percent in the past year, while house prices are 11 percent below their 2014 peak, said Frank Daly, chairman of Ireland’s National Asset Management Agency, known as NAMA.

London Property Prices Falling Faster Than You Think, NAMA Warns - Bloomberg