Brexit Britain: what to expect now we’ve left

Homeowners, holidaymakers and investors may be in line for a windfall now that Britain has officially left the European Union.

Experts have predicted a jump in the value of the pound if Boris Johnson manages to iron out the details of his deal before July.

This would benefit holidaymakers, whose spending power has been hit by the currency’s turbulence. Figures from Post Office Money suggest that currency fluctuations have increased the cost of the average family holiday to France, Spain or America by about £200 since the Brexit referendum.

Investors could also be in for a boon. A rise in the value of the pound would be good news for stocks whose performance is closely linked to the British economy. These are mostly medium-sized and smaller companies, often part of the FTSE 250 index. They will benefit from reduced costs of buying goods from overseas, boosting their spending power.

On the other hand, investors in larger firms may well suffer from any “sterling bounce”. Britain’s largest companies, which make up the FTSE 100 index, derive about 70pc of their profits from overseas, meaning that a strong rally in the pound would cut into their earnings in sterling terms.

The lack of clarity over Brexit has affected the property market too. The number and value of home sales have tumbled since 2016, leaving many unable to move or forced to accept lower offers.

David Ruddock of Carter Jonas, the estate agency, said more certainty around Brexit would unlock the market, as people waiting to sell their home would no longer sit on their hands. A more active market should boost property prices, he added.

British pensioners living in Europe will also be relieved as the Government has confirmed that Brexit will not affect their entitlement to continue receiving their UK state pension if they live in a European Economic Area state or Switzerland.

However, after 2022 it is not clear if the “triple lock” will continue to apply to expat pensions.