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These are my assessments.
Following, if not before, Brexit there will be a loss of confidence in sterling. The UK’s financial
and banking sector will no longer enjoy the support of the EU in the event of a financial crisis.
To defend the pound the government will have to raise rates to attract buyers of its debt. This will depress/undermine property prices. Foreign investors will exit the domestic property market. I suspect enforced selling of property will follow: if existing mortgagees can only just afford repayments at current rates, then an increase could prove to be the proverbial straw that breaks rthe camel’s back.
Banks may be forced to call in loans to protect their liquidity requirements. Builders will be hit very hard.
Following, if not before, Brexit there will be a loss of confidence in sterling. The UK’s financial
and banking sector will no longer enjoy the support of the EU in the event of a financial crisis.
To defend the pound the government will have to raise rates to attract buyers of its debt. This will depress/undermine property prices. Foreign investors will exit the domestic property market. I suspect enforced selling of property will follow: if existing mortgagees can only just afford repayments at current rates, then an increase could prove to be the proverbial straw that breaks rthe camel’s back.
Banks may be forced to call in loans to protect their liquidity requirements. Builders will be hit very hard.
