House prices could fall by over a third in the event of a no-deal Brexit, Bank of England chief Mark Carney has warned.
He told senior ministers that in a worst-case ‘stress testing’ scenario, house prices would crash by 35% over three years as mortgage interest rates spiralled, potentially sending millions of home owners into negative equity while making it harder for younger people to get on the housing ladder.
Carney also said, that in this modelling, there could be a slump in the pound as well as a general recession.
According to this morning’s Times newspaper, Carney’s “grim” assessment was not challenged by Brexiteers during yesterday’s three and a half hour special cabinet meeting.
One observer said: “Carney was very spicy. You saw a few eyebrows going up around the room but nobody challenged him.”
However, the Bank of England governor’s projections were dismissed last night as ludicrous.
Emoov CEO Russell Quirk said: “Mark Carney is supposed to be a custodian of the British economy.
“Instead, he continually indulges in talking it down in order to try to bring about the negative prophecies that he spouts as an ardent Remainer.
“Regardless of his political stance, he would do well to wind his neck in and desist from being such a fiscal Grim Reaper.
“Not one of his forecasts has materialised to any truth and his talk of house prices dropping by a third in the event of a no-deal Brexit is pure fiction, based upon bluff and bluster.”