23 May

Chancellor warns market over EU exit

Chancellor warns market over EU exit

Chancellor George Osborne believes house values in the UK could fall by up to 18 per cent if the country votes to leave the European Union.

Speaking at the G7 finance ministers’ meeting in Japan, Mr Osborne explained the short term economic impact of Brexit could reduce house prices by ten per cent by 2018 - making it 18 per cent behind expected values if EU membership continued.

"If we leave the European Union there will be an immediate economic shock that will hit financial markets. People will not know what the future looks like. And in the long term the country and the people in the country are going to be poorer,” explained the chancellor.

"That affects the value of people’s homes and the Treasury analysis shows that there would be a hit to the value of people’s homes by at least ten per cent and up to 18 per cent. And at the same time first time buyers are hit because mortgage rates go up, and mortgages become more difficult to get. So it's a lose-lose situation."

He added undermining the British economy by leaving the EU could also reduce the normal of affordable homes being built across the country.
The International Monetary Fund has also recently warned that a vote in support of leaving the EU could also see an increase in mortgage rates due to the uncertainty of the financial market.ADNFCR-1222-ID-801818864-ADNFCR

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