‘Dis­or­derly Brexit could cause house-price crash’

Western Mail - - NEWS -

THE gov­er­nor of the Bank of Eng­land has warned min­is­ters that house prices could crash by more than a third in the event of a dis­or­derly, no-deal Brexit.

Mark Car­ney briefed Theresa May and se­nior min­is­ters on the Bank’s plan­ning for a “cliff-edge” break with the EU at a spe­cial Cabi­net meet­ing on Thurs­day to re­view the gov­ern­ment’s no-deal prepa­ra­tions.

It is un­der­stood he warned house prices could fall by up to 35% over three years in a worst-case sce­nario, as ster­ling plum­meted and the Bank was forced to push up in­ter­est rates.

Ac­cord­ing to re­ports, he com­pared the fall-out from such a chaotic de­par­ture to the 2008 global fi­nan­cial crash. Min­is­ters were said to have lis­tened in si­lence as he and Chan­cel­lor Philip Ham­mond spelled out the grim con­se­quences for the econ­omy.

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