Britain’s dysfunctional housing market is causing major problems for the UK economy
by Jeremy Warner
Fitch, the credit rating agency, today warns that Brexit might lead to a 25pc correction in house prices, bringing them down to what Fitch believes is their long term “sustainable” level. I don’t mean to be irresponsible, but good; this would be very welcome.
There are few things likely to turn me into a Brexiteer, but the prospect of falling house prices might just do it, and I speak here as someone with some degree of housing wealth. A Treasury assessment of the short term consequences of Brexit, due to be published in the next week or so, is expected to focus heavily on this supposed bogey. But I wonder whether a sharp correction in the housing market is in fact the unarguable harm presumed, or even if it is true that Brexit would lead to such an outcome.