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Brexit could cause £11,000 drop in house prices

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Written by: Moa Aarenstrup
23/02/2016
An UK exit from the EU could see house prices drop by 5%, resulting in a £11,000 reduction in property values, figures from Emoov show.

Some 55% of homeowners believe a ‘Brexit’ would impact the value of their property. A third think prices would increase, while a fifth think they would decrease, a survey among 1,000 homeowners conducted by the online estate agent revealed.

The estate agent said it believes the uncertainty among homeowners and buyers will cause the price drop, rather than leaving the EU itself.

It said Brexit raises many questions regarding what its effect could be on the financial market as a whole, such as whether unemployment will rise, GDP will fall or exports decrease, which could cause businesses to fall.

If this was to happen, Emoov believed the demand for housing would decrease, causing house prices to drop.

In contrast, since Great Britain joined the EU in 1973, property prices have increased by an average of 2,000%.

Russell Quirk, founder and CEO of emoov.co.uk, said: “Should the UK public votse to leave the EU, we believe it could have a detrimental knock on effect to the UK property market. We’ve been part of the EU for over 40 years now, so it’s understandable that such a momentous change will lead to uncertainty amongst the UK public, as to the resulting implications an exit will have on them.

“Since we joined the EU the average UK house price has increased by more than 2,000%, but even just the potential of an EU exit could start to slow the market. So the results of a yes vote on the main stage of the EU could have a much larger impact on the UK as a whole,” he said.

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