House prices would plummet in no-deal Brexit, says Carney

in #news3 years ago

Mark Carney, left, leaving Downing Street today, where he briefed the cabinet on the Bank of England’s preparations for Brexit

House prices would fall by 35 per cent over three years following a chaotic no-deal Brexit, according to a briefing given by Mark Carney to the cabinet today.

The governor of the Bank of England told senior ministers that spiralling mortgage rates would crash the housing market in a stark presentation. He was briefing them on the Bank’s preparations to cope with the aftermath of leaving the European Union without a full withdrawal deal next March.

He outlined Bank of England modelling on the consequences of the EU agreeing a skeleton deal, one in which a few ad hoc arrangements are struck and a worst case chaotic exit.