Brexit ‘bad for house prices’

7 Days in Dubai - - NEWS -

The Group of Seven ma­jor economies has agreed to more ag­gres­sive ac­tion to fight fi­nanc­ing of ter­ror­ism and vi­o­lent ex­trem­ism. Fi­nance lead­ers of the G7 is­sued an “ac­tion plan” fol­low­ing talks in north­ern Ja­pan yes­ter­day, call­ing for in­creased ex­changes of in­for­ma­tion on fi­nan­cial in­tel­li­gence, re­duc­ing the level of cross­bor­der trans­ac­tions sub­ject to dis­clo­sure and col­lab­o­rate on tar­geted sanc­tions for ter­ror­ists’ fi­nan­cial net­works. The an­nounce­ment fol­lowed two days of talks ahead of a G7 sum­mit in cen­tral Ja­pan’s Ise re­gion this week. The of­fi­cials spent Fri­day dis­cussing ways to use mone­tary pol­icy, gov­ern­ment spend­ing and longer-term re­forms to help sup­port growth. “All of us were re­ally able to have a can­did dis­cus­sion and to reaf­firm the im­por­tant role of the G7,” said Ja­panese Fi­nance Min­is­ter Taro Aso. Hav­ing agreed to only tacit co­or­di­na­tion of their vary­ing strate­gies for boost­ing growth, the G7 fi­nance meet­ing turned yes­ter­day to is­sues such as ter­ror­ist fi­nanc­ing, tax eva­sion and sup­port for fight­ing pan­demics. Aso ac­knowl­edged dif­fer­ences with the US over such is­sues as ex­change rates, but in­sisted there was no fric­tion, af­ter meet­ing with US Trea­sury Sec­re­tary Ja­cob Lew. “They have their own po­si­tion. They have an election com­ing and we also have an election com­ing,” he said. “We have to say what we think to each other be­cause it’s business. It’s nor­mal to ex­change views and en­sure things will not go awry be­cause is­sues be­come too emo­tional.” Lew said he hoped the talks would keep on track com­mit­ments made dur­ing re­cent dis­cus­sions by the wider Group of 20 ma­jor economies, where mem­bers pledged to not ma­nip­u­late ex­change rates to their own ad­van­tage. Bri­tish house prices could fall by up to 18 per cent if Bri­tain leaves the Euro­pean Union. UK Trea­sury chief Ge­orge Os­borne said leav­ing the EU would be a “pro­found eco­nomic shock” that would lower prop­erty val­ues and raise mort­gage rates. Trea­sury anal­y­sis es­ti­mates prop­erty prices will be worth be­tween 10 and 18 per cent less by 2018 if Bri­tain leaves than if it stays. How­ever, it was a claim dis­missed as scare­mon­ger­ing by cam­paign­ers for a UK exit from the bloc. Bri­tish house prices rose nine per cent in the year to March, and the value of prop­erty is some­thing of a na­tional ob­ses­sion - es­pe­cially in London, where the av­er­age home costs £535,000 ($775,000), 10 times the av­er­age an­nual house­hold in­come. Os­borne said al­lies in­clud­ing France, Ger­many and the US agreed that “it would be bad for the Bri­tish econ­omy if we left the Euro­pean Union”. But En­ergy Min­is­ter An­drea Lead­som, who backs a “leave” vote in Bri­tain’s June 23 ref­er­en­dum, said yes­ter­day that “the great­est threat to the econ­omy is the per­ilous state of the euro” cur­rency.

WARN­ING: Os­borne

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