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U.K. House Prices Could Drop 18% After Brexit, Treasury Says

  • New Treasury analysis sees a poorer Britain outside the EU
  • British homes worth at least 10% less by 2018, study finds
A row of terrace houses stand in London, U.K., on Sunday, Ap
Photographer: Jason Alden/Bloomberg
Updated on

British house prices would take a severe blow in the years immediately after a vote to leave the European Union, according to an analysis by the Treasury.

The study concludes that prices would be between 10 percent and 18 percent lower by 2018 relative to their performance inside the EU, according to the Treasury. However, Chancellor of the Exchequer George Osborne insisted this wouldn’t be good news for people trying to buy houses because mortgages would become more expensive and harder to get. The Treasury will publish its full analysis of the short-term consequences of a Brexit next week.