103386951 carney bbc


Brexit: Carney warns no-deal could see house prices plunge


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.

Mark Carney met senior ministers on Thursday to discuss the risks of a disorderly exit from the EU.

His worst-case scenario was that house prices could fall as much as 35% over three years, a source told the BBC.

The comments are likely to spark anger amongst Brexiteers.

There were also widespread reports that the governor told the Downing Street meeting that mortgage rates could spiral, the pound and inflation could fall, and countless homeowners could be left in negative equity.

According to the Financial Times a source told the paper that all Mr Carney's predictions were "grim" and "chilling". The FT said the governor took questions from ministers, but there was no hostility.

However, The Sun had a different take on the meeting, reporting that Home Secretary Sajid Javid and Health Secretary Matt Hancock "ripped into" Mr Carney because of his doom-laden briefing.

Mr Carney, who has just agreed to stay on as governor of the central bank until 2020, has faced strong criticism in the past, with Brexiteers accusing him of being part of the Remain camp.


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