18% drop in house prices on “Brexit” says George Osborne
The latest prediction by George Osborne that house prices will drop by 18% over 2 years if the UK votes to leave the EU is another attempt to dissuade the “Brexit” supporters, it may have had some credibility if he had not been so precise with the figure, why not 10% or 25%, how does he arrive at precisely 18% and what evidence does he have to support such a claim? his claim is just an opinion as anyone else may hold an opinion, it is definately not a fact.
What is a fact is that many would welcome a drop in house prices, especially first time buyers who are desperate to get a foot on the property ladder, they would be more than happy to escape from being one of those who are termed as “Generation Rent”.
House prices are at present grossly overpriced, no more so than in the capital, whatever the result of the referendum a cooling of house prices is more than likely to take place, this will probably start in London and ripple out, there are reports that ‘top end’ property prices have already started to stagnate in the capital and sellers are having to cut prices to attract buyers, whether Brexit or not house prices will almost certainly correct sometime in the future, that may come sooner than many expect if increases in interest rates begin to happen.