HOUSE prices could plunge by more than a third if there is a no-deal Brexit, the Bank of England’s governor has warned.
Owners should prepare for values to fall by 35 per cent in the next three years if Britain quits the EU without reaching an agreement, Mark Carney (pictured) said.
He also warned that interest rates would surge and employment would drop, sources said after he addressed Theresa May’s cabinet at a behind-closed-doors meeting.
The impact could be as bad as the 2008 credit crunch but the Bank is ready to cope, he is said to have added.
Lib Dem MP Tom Brake, a member of the anti-Brexit Best For Britain group, said: ‘It is clear that the mantra that no-deal is better than a bad deal is just hogwash with this sledgehammer of an announcement. We are facing a Brexit no-deal house price collapse.’
Mr Carney’s message came as France warned that flights could be grounded and Eurostar services halted if Britain leaves without a deal.
Its minister for European affairs, Nathalie Loiseau said it was ‘correct’ that trains and planes will not legally be able to cross to the continent if EU rules no longer apply and are not replaced.
She told a Chatham House think tank conference in London: ‘If we do nothing and if we reach no agreement, this is what would happen, among other examples.’ Ms Loiseau said she hoped Britain and the rest of the EU would be able to reach a pact, joking: ‘We are trying to divorce without hurting the kids.’
Motorists could also be stopped from crossing the channel, according to advice released by the government yesterday.
They would need to apply for international driving permits as British driving licences would no longer be valid on the continent in the event of a no-deal.
Mobile roaming fees could also rise — although operators promised yesterday to keep them down.
No.10 stressed avoiding a no-deal was ‘in everybody’s best interests’.
■ AN MP cradled her baby on parliament’s green benches yesterday — in what is thought to be a first during a Commons debate. Liberal Democrat deputy leader Jo Swinson (pictured) brought Gabriel into the chamber for a discussion about proxy voting, which could allow MPs on maternity and paternity leave to nominate a colleague to cast their vote in their absence.