Experts are saying that Brexit will cause a housing slump. As much as 10% nationally and 20% in London. Do we believe all the hype?
· Sales expected to fall up to 10 per cent nationally and up to 20 per cent in London
· A drop in house prices expected to follow, with a 5 per cent drop in the second half of this year predicted
· Bank of England governor Mark Carney says 'additional measures' will be taken if required
· Measures could include a cut in interest rates or additional money being pumped into the economy
· Calls for a 'clear strategy' to manage Britain's exit from the EU to help iron out uncertainty among borrowers
Britain's property boom is expected to end following the Brexit vote, housing experts have warned.
Some experts have predicted massive falls in sales and valuations in the months ahead due to the uncertainty surrounding Britain's exit from the European Union.
One property specialist said that the near term prospects for the UK housing market now look very uncertain.
History does show that external shocks are likely to reduce sale volumes by as much as 5 per cent even as high as 10 per cent nationally, London always seems to fair worse with predictions of up to 20 per cent, with sales volumes in the capital already down over the last year.'
However, the Bank of England's Mark Carney spoke immediately after the Prime Minister's resignation trying to reassure the financial markets, including those invested - or looking to invest - in the property market.
He said that the Bank of England would not hesitate to take any additional measures required.
These measures could include a cut in interest rates which we expected earlier this month, however these stayed at the current rate, the Bank of England have however said that they would not rule out the interest rate being cut in the months to come. This would reduce homeowners' monthly mortgage payments - a measure which was repeatedly taken during the financial crisis of 2008.
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