George Osborne’s humiliating Brexit property crash prediction as UK market ‘on fire’ | UK | News




The Bank of England’s Chief Economist, Andy Haldane, said the UK housing market is currently “on fire” ahead of his final monetary policy committee (MPC) meeting on Thursday. According to the Office for National Statistics (ONS), property prices rose by 8.9 percent in the year to April, which was down from 9.9 percent boom in March – the biggest rise since 2007. It appears to be an embarrassing blow for Mr Osborne after his downbeat assessment for Britain after Brexit.

Speaking at the G7 summit in 2016, Mr Osborne said: “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.

“In the long term, the country and the people in the country are going to be poorer.

“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 10 percent and up to 18 percent.”

The forecast was shared on Twitter yesterday by the Financial Time’s Chief Political Correspondent, Jim Pickard, who noted: “Not sure this prediction has aged brilliantly.”

The Treasury’s forecast was said to be for the first two years after the vote and came following a series of warnings from Downing Street forecasting dire consequences.

Mr Osborne also said households would be £4,300 a year worse off and millions of jobs would be at risk, while former Prime Minister David Cameron argued that Brexit could jeopardise peace in Europe.

At the time they were accused of scaremongering and negativity by Vote Leave – Former Business Secretary Andrea Leadsom said it was “an extraordinary claim and I’m amazed that Treasury civil servants would be prepared to make it”.

She added: “The truth is that the greatest threat to the economy is the perilous state of the euro, staying in the EU means locking ourselves to a currency zone, which Mervyn King, the ex-governor of the Bank of England, has rightly warned ‘could explode’.

“The safer option in this referendum is to take back control of the vast sums we send to Brussels every day and vote Leave on June 23.”

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Jamie Durham, an economist at PWC, said: “These figures appear to confirm the market remains hot, notwithstanding that the housing market was effectively closed in April last year, which makes comparisons difficult to read too much into.

“We expect that these forces will continue to support price growth over the coming months.”

And the ONS said: “UK average house prices fell on the month in April, ending 11 consecutive months of growth.

“House prices continued to increase when compared with last year, with London once again showing the lowest annual growth most apparent within inner London boroughs.”


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