The Bank of England has reiterated its earlier claims of a 30% fall in house prices under a 'disorderly' Brexit scenario. The Bank published its analysis of the Withdrawal agreement yesterday, which included estimates for GDP, house prices, unemployment and inflation in both a 'disorderly' and a 'disruptive' Brexit scenario. In the 'disorderly' Brexit scenario, there is no deal and no transition period which leads to a severe economic shock. The UK loses existing trade arrangements that it currently has with non-EU countries through membership of the EU and there is a pronounced increase in the return investors demand for holding sterling assets.
Feeling a little lost on Brexit? Never really got your head around it in the first place? Let us walk you through it.
A recent softening in new buyer demand is now causing house prices to fall nationally, according to the latest RICS residential market survey. However the regional picture remains highly varied, with some parts of the UK still seeing fairly strong price growth and much of the weakness continuing to stem from London and the South East. East Anglia, the South West and the North East also returned negative readings. Respondents said a sustained softening in demand over recent months has likely driven the weaker price trends in parts of the country.