House Prices to crash by a third from a ‘Do Deal’ Brexit says Mark Carney
Yes, I know, for those who voted Brexit then there is no such thing as a ‘No Deal’ Brexit, it is either as what was voted for ie leaving the EU ie Brexit or not. Though with the headline that many like to embrace, a no deal Brexit is now threatening a third of value crash in the UK property sector.
I am sure many readers, mostly those pro Brexit, will likely agree that house prices really need an adjustment and a third off the value is very much where things should be as more and more people struggle to get on to the housing ladder or struggle with rental payments – A house price adjustment would be just the ticket for many people nationally. Those with a vested interest in property and likely to be on the side of a remain in the EU outcome re Brexit, then this could be a major concern, finances in ruins, tough times ahead as prices start to fall, more property arrive on the market, landlords dumping portfolios and buyers starting to play the waiting game (it has been sometime since we had that situation).
So, how can a Brexit deal really effecting the UK housing market? Interest rates apparently and the fact that they may get hiked up in order to accommodate a drop in value for the sterling (didn’t we have a drop in value on a few years back when the pound was more or less level with the Euro?). Mark Carney, Governor of the Bank of England, recently secured himself a continued role in that position until at least 2020 so he will likely be about if his predictions come true and be there to orchestrate the rise of interest rates… Maybe.
Many media outlets are reporting on the likelihood of a property price crash: https://www.dailymail.co.uk/wires/pa/article-6165883/Bank-England-warns-no-deal-Brexit-house-price-crash.html