The world is buzzing today with the news that Britain has voted to leave the EU. This news could have a particularly large impact for the many Londoners who are sharing homes with citizens of the EU. Remember the first time you ever saw inside your reclusive housemates room? That’s basically what Europe is going through right now- uncharted and unknown lands. We want to do our best to communicate exactly what this means if you are sharing a home.
Here are the answers to some questions you may have about how Brexit will impact your shared home. This analysis was brought to you by Splittable, a free app for managing your shared household finances.
Will I need to immediately find someone to take over my European flatmates rent?
No. Don’t be a jerk and go listing your European’s flatmate’s room on Spareroom. There will be no immediate changes in current circumstances of immigration. Negotiations will start when Article 50 of the Lisbon treaty is invoked. After that day two years will be the maximum amount of time to determine negotiations. David Cameron will leave the task of triggering Article 50 to his successor. These negotiations will determine the exact terms of Britain leaving the EU. Immigration status will not be changed until after negotiation – the maximum amount of time for this negotiation to be determined is two years but in reality none of us know how long it will actually take.
Remember, political leaders want to keep positive relations between the UK and Europe. No one is asking France to build a wall and pay for it.
How will this impact my cost of living if I am a European living in the UK?
This vote will not immediately impact your cost of living in terms of rental costs within the UK, however, it could have implications in the future. The initial consequence is with the drop in value of the pound, your UK salary won’t go as far when you travel abroad. For household bills there could be a rise in wholesale gas and electricity prices. This would be caused because gas prices are quoted in US dollars which would cost more as the pound is weakened.
Will it be easier to find a place to rent?
This is London. Short of 28 Days Later becoming reality, it isn’t going to get that much easier. In the short term, agents are predicting that there will be a slight drop in demand for the rental market due to an decrease in international applicants. Agents will see fewer prospective tenants per property due to a fall in international demand.
Fewer people looking to rent property could mean more negotiating power for tenants still in the market looking for homes. That being said, landlords that are paying off a mortgage will still need to make mortgage payments set some time before this referendum. As such, for the immediate future it is unlikely they will be willing to lower rents – but do keep an eye out and drop us a line or a Snapchat if you notice anything to the contrary. We’re keen to stay on top of this so we can help young renters make the best decisions.
I’m a European student studying and living in the UK. Will tuition rates stay the same and will I still be able to afford my student flat?
If you’re a student, many universities have already announced that tuition rates will remain the same for members of the EU. Referendum results have also shown that some 75% of 18-24 year olds voted Remain. Many organizations such as Universities UK and the National Union of Students have already declared their efforts to maintain the United Kingdom as an “attractive destination” for talented students across Europe.
We asked Tom Woolf, Founder & CEO of student loan crowdfunding business EdAid to comment and he stated: “For higher education students young and old, Brexit will not have an adverse effect on their education, the cost of studying in the UK or their ability to afford their student flat.
The UK post-Brexit will still be one of the most attractive places to live, study and work in the world. Likewise, the UK will always welcome talented graduates, whose skills add value to the UK economy to live, build a life and work here post-graduation.”
In many ways what will happen over the next two years in Britain and the rest of the EU is simply unknown. The true impact of Brexit on Britain will not be fully understood until further negotiations between Britain and the EU are completed. The next two years will mark a huge transition for the economic future of Britain and the future of the EU as the markets have time to adjust to the new state of play.
Want to make sure you know where your finances are headed in these uncertain times? Download Splittable today.
Further articles to look at:
How will Brexit affect your finances? BBC
Brexit: What does it mean for expats, here and in the EU? BBC
EU referendum result: What does Brexit mean for the UK’s higher education sector and students? Independent
How leaving the EU will impact London’s property market. Evening Standard, Homes & Property
What does Brexit mean for your money? This is Money