A new survey from SyndicateRoom says that Brexit vote would put over £2 trillion of personal investments at risk.
What’s more, that the cost of living would increase if UK votes to leave the EU, with household savings negatively impacted, and that UK household expenditure would decrease by 4%.
SyndicateRoom surveyed Over 3,000 individuals about their investment decisions based on the referendum, with the majority believing that the UK leaving the EU would have a negative impact on their investments.
Other findings were that women expect to be economically worse off in Brexit scenario and that only 26% of the UK believe that Britain will actually leave the EU.
A statement said: “When comparing the views of investors across the spectrum of company equities, SyndicateRoom found that around £2,025 billion of assets will be at risk of harm if the UK votes to leave the EU, with an average £81,000 of invested assets per capita. Almost half of the investment at risk is believed to be in the property market, with £900 billion of property investment expected to be at harm of the UK votes to leave the EU.
“The research also found that savings, as well as investments, are expected to be adversely affected if the UK voted in favour of leaving the EU. 55% of respondents expect their savings to be adversely affected by Brexit, a figure evenly reflected across UK households, from high-earners to low-earners.
“SyndicateRoom also assessed the cost of living impact of a Brexit vote, finding that women expect to be more adversely affected than men if the UK voted to leave the EU. This was reflected by a stark contrast in employment prospects in a Brexit scenario, with 54% of men expecting to have better employment prospects if UK left the EU.
“From the research, SyndicateRoom estimates that over half the UK population believe that the UK is likely to remain part of the EU, following the referendum vote. Meanwhile, 26% believe that the UK will eventually leave the EU following the vote on 23 June, while 23% remain unsure of the outcome.
“While older voters were more confident of a Brexit vote, with 34% of voters over the age of 50 expecting the UK to leave the EU, compared to 20% of voters under the age of 30, voters across all age demographics said they would reduce their household spending if the UK voted to leave the EU on 23 June. From this research, SyndicateRoom can estimate that household expenditure would decrease by 4% if the UK left the EU, with 52% respondents over the age of 50 saying that they would reduce their expenditure if the UK voted for Brexit on 23 June.”
CEO and co-founder of SyndicateRoom Goncalo de Vasconcelos said: “The research reveals that UK households would be adversely affected by a Brexit vote. At SyndicateRoom, we want to help individuals increase their net wealth through equity investment – and based on this research, it appears that is more likely and more achievable if the UK remains part of the EU.
“Our findings demonstrate that in times of uncertainty, investors should give added attention to portfolio diversification, given the evident risk in the property market. There is great value to be created through equity investment, and SyndicateRoom is proud to have a strong track record of highlighting the associated risks.”
IFA Magazine’s Brexit coverage series is supported by Old Mutual Global Investors. Watch out for their special report on the impact of the Brexit result on UK equities, available on the 28th of June.