It’s possibly true that we don’t want a cliff edge drop in house prices. Possibly. But it is a general thought across varied policy makers that UK house prices are too, too, high and that something ought to be done to lower them. Then we’ve Mark Carney telling us that Brexit might cause a 35% fall in house prices. This is being said to turn the Daily Mail constituency determinedly against the very idea of leaving the EU of course. But given that it achieves what it is said must be achieved this looks like an argument in favour of Brexit, doesn’t it?
The Bank of England’s governor has warned the cabinet that a chaotic no-deal Brexit could crash house prices and send another financial shock through the economy.
The problem with this being?
Mark Carney briefed Theresa May and senior ministers on the Bank’s planning for a “cliff-edge” break with the EU at a special Cabinet meeting on Thursday to review the Government’s no-deal preparations.
It is understood he warned house prices could fall by up to 35% over three years in a worst-case scenario, as sterling plummeted and the Bank was forced to push up interest rates.
Well, yes, rising interest rates would take the steam out of a house price boom.
According to reports, he compared the fall-out from such a chaotic departure to the 2008 global financial crash.
Ministers were said to have listened in silence as he and Chancellor Philip Hammond spelled out the grim consequences for the economy.
Two Remainers scaring the Bejabbers out of the Cabinet then.
But think of this on that larger scale. The entire Labour Party insists that we’ve got to do something about the cost of housing. Near every NGO – especially the likes of Shelter etc – insists that the lack of affordable housing is our biggest economic and social problem. Brexit will make all housing more affordable, this is a good idea then, isn’t it?
We should therefore see Shelter, all those NGOs, the Labour Party and the concerned and progressive of all types now switching to supporting Brexit therefore. And will we? Ah, no, that would be to expect consistency in politics – but it still ought to happen, no?