UK house prices could crash by as much as a fifth if Boris Johnson pursues a no-deal Brexit, and the biggest falls would be in London and Northern Ireland, a leading accountancy firm has said.
Reflecting the potentially vulnerable state of the property market as Brexit looms, KPMG said house prices would fall by between 5.4% and 7.5% across different regions next year if a new agreement with Brussels was not in place by 31 October.
The analysis of average house prices across the country showed no deal could trigger a nationwide decline of about 6% in 2020 and that and a drop of between 10 and 20% was “not out of the question” if the market reacted more strongly than expected….
Jan Crosby, the UK head of housing at KPMG, said Britain leaving without a deal would probably lead to a sharp drop in sales volumes as wary homeowners wait for the turbulence in the property market to clear. This in turn would “make government housing delivery targets impossible to achieve and slow new building across the sector”, he said.
Against a backdrop of falling owner occupation in Britain as first-time buyers find it difficult to get on the housing ladder, the government has promised to deliver 300,000 homes a year by the mid 2020s.