Bank of England Governor warns of Brexit house price plunge

The Governor of the Bank of England, Mark Carney, has warned that a no-deal Brexit could cause a house price crash.

He said that in the worst-case scenario, house prices could fall by as much as 35 per cent over the three years following the UK’s withdrawal from the EU, according to reports.

His comments were widely reporting in the media as having been made to ministers at a Downing Street briefing last week.

Speaking in Dublin last Friday, he said: “Our job, after all is not to hope for the best but to plan for the worst.”

Zahra Himani, a Senior Associate in the Property team at OGR Stock Denton Solicitors, said: “Mark Carney’s comments have actually triggered further uncertainty in clients who, after the comments, are now re-considering proceeding with purchases or wishing to, at the very least, delay matters to some extent so that they can evaluate market conditions.

“People will always need to buy and sell, this is a fact. However, we are noticing that buyer clients are unwilling to push through at the same pace as, say, this time last year”.