Introduction
Over the past 3 years, we saw that the uncertainty around Brexit has weighed on the UK economy, lowering the consumption growth rate from 0.6% (between 2009 and 2016) to 0.3% after June 2016, reducing business investment (see article here) and, therefore, lowering growth expectations. Figure 1 (left frame) shows the change in regime in the past few years following a long period of low uncertainty according to the Economic Policy Uncertainty ((EPU)) index (developed by Baker et al., 2016).
Another important factor was also the dynamics in the housing market, which has