Cambridge News:
Brexit: Lower wages could cause drastic drop in house prices, experts say
3 July 2017
Homeowners could see a sharp drop in the value of their houses because of Brexit paired with the wage drop, a London School of Economics professor predicts. Prices could fall almost 40 per cent and even put homeowners at risk of negative equity, meaning their home could be worth less than their mortgage, The Mirror reported. Professor Paul Cheshire, Professor of Economic Geography at LSE, said the property market could take a sharp downturn similar to the crash in the 1990s. He said house price can be affected when earnings drag behind inflation. Last month, inflation hit 2.9 per cent, while incomes grew by 2.1 per cent.