A study on the economic effect of Brexit in relation to home improvements

The referendum vote has undoubtedly had an effect on the British economy already, with many battening up the hatches and taking cover. But is it all bad? Simple economics boils down to supply and demand, so could this be a great time to make home improvements and pay less for the privilege?

This report analyses some crucial economic statistics that are relevant to making home improvements & weighs up the advantages of making home improvements whilst demand is imbalanced with supply.. which means lower prices.  

Supply & Demand

So simply put, if there is less demand for a service, companies offering those services have less work. This naturally creates a more competitive market as the companies fight for the lions share. This creates the prefect environment for the consumer to capitalise on a great service, for less. Since September 2017, the roofing industry in South London, London and Surrey has suffered from a decrease in demand, and that decrease has driven down prices. So this is a great time to get a premium company to carry out your project right? Yes, but beware of material downgrades designed to compensate for the lower prices. Ask for material specifications on your quotes to ensure you are comparing quotes fairly. If you employ a roofing company that is a member of the NFRC, minimum standards in specification will be adhered to as standard practice.

There are a few factors that could be contributing to the decrease in demand in the roofing sector. These may include:

  • Uncertainty caused by Brexit
  • Uncertainty caused by Brexit
  • Uncertainty caused by Brexit

Yep, you’ve guessed it.. Ive made my mind up about what is to blame for the decrease in demand. Although lower than average annual rainfall hasn’t helped, ill admit. The truth is, none of us know what to expect from the Brexit negotiations, and how they will affect our income and day to day lives. That uncertainty is triggering the ‘rainy day contingency plan’ in all of us, and we’re reluctant to separate from our hard earned cash. The dollar has stood up against the pound, or the pound has dropped.. however you’d like to word it, and Europe is certainly playing hard ball in negotiations with the UK. On top this, the media attention surrounding Brexit is pretty negative, and the ripple effect is starting to take its toll on all of us. 

But is it all that bad?

Lets take a look at some of the core statistics that give us an indication of the state of our economy in simple format:

House prices – Gains for homeowners

I pulled these statistics from the land registry office that are accurate up to Sept 2017:



Borough Avergage

House Price

Av Increase in Price

in last 12 months

Av Gains in

12 months

Wandsworth 627,000 2.34% £14,671
Southwark 525,000 1.31% £6,877
Croydon 382,000 3.73% £14,248
Kingston 501,000 3.89% £19,488
Fulham 760,000 4.15% £31,540

Mortgage Advance Borrowing

Mortgage advances are cheap at the moment. The Bank of England interest rates remain low at 0.5%, and this is enabling banks to offer low rates on borrowing. Santander are offering rates of 2% on mortgage advances, and HSBC just 1.94%.

So we know we’ve made gains in our property equity, and we know mortgage advance borrowing is cheap. 

What else…..?

Return On Investment

A study conducted by This Is Money revealed a 63% ROI on a re-roofing works when you come to sell up. You would have to assume that the roof is within 10 years old and still under guarantee (insurance backed with the right contractor). This makes your decision a lot easier when contemplating whether to capitalise on the imbalance of supply and demand in the roofing industry right now. Take a look at this  example of a roof renewal true cost in Wandsworth:

Av price of home Gains in 12 months ROI True cost
627,000 14,671 63% (£9242) £5429

Job security & the effect of Brexit on companies in Blighty

I cannot predict the security/stability of any one job. No-one can. I can offer some recent statistics to allow you to measure any increase or decrease in the risk of your desk being cleared abruptly:

Unemployment rates:

The UK currently (as of June 17) has an unemployment rate of 4.3%. This is down year on year from 4.9% in 2016. Good news! By comparison, the USA currently has unemployment rates of 4.4%, France 9.6% and Spain 17.1%. 

Corporation tax incentives

It is well publicised that the UK currently has the lowest corp tax rate of all of the G20 members. This rate of 19% is due to drop to 17% by 2020 (just over 2 years from now), which will certainly be appealing to large companies who have the ability to change HQ or offices. Ill leave it to you to make your own assumptions, but it is logical to assume that if a company can pay less tax legally, they will be drawn towards that. This will strengthen the UK economy & also create more Uk jobs in the process.. should it happen.


Although it doesn’t feel like it, on average wages have risen year on year in the past 12 months. The UK average rise in the private sector is listed at 2.2% (average taken over a 3 month period and based on weekly pay). Inflation has gone up to 3% sure, so we are likely no better off. It doesn’t change the fact that wages have not decreased on average however, so these statistics are relevant.


So prior to any edits, thats it! I have presented a basic study on current economic (basic) affairs, and their relationship to Brexit and the services industry. Every decision on investment is individual, and circumstances can vary, but I hope this report highlights an investment opportunity at a significantly lower than usual price, that can add to your most prized asset.. your home.

Every cloud…