Bank of England chief economist Andy Haldane said the UK property market was currently “on fire” ahead of its last Monetary Policy Committee (MPC) meeting on Thursday. According to the Office for National Statistics (ONS), house prices rose 8.9% in the year through April, up from 9.9% in March – the largest increase since 2007. It appears to be an embarrassing blow to Mr Osborne after his negative assessment for Britain after Brexit.
Speaking at the G7 summit in 2016, Mr Osborne said: âIf we leave the European Union, there will be an immediate economic shock that will hit financial markets. People will not know what the future will look like.
âIn the long run, the country and the people of the country are going to be poorer.
“It affects the value of people’s homes and Treasury analysis shows that there would be an impact on people’s home values ââof at least 10 percent and up to 18 percent.”
The forecast was shared on Twitter yesterday by Financial Time chief political correspondent Jim Pickard, who noted: “I’m not sure this prediction has aged brilliantly.”
The Treasury forecast was supposed to cover the first two years after the vote and followed a string of warnings from Downing Street predicting dire consequences.
Mr Osborne also said the household situation would be Â£ 4,300 a year and millions of jobs would be at risk, while former Prime Minister David Cameron argued Brexit could jeopardize peace in Europe.
At the time they were accused of scare and negativity by Vote Leave – Former Business Secretary Andrea Leadsom said it was “an extraordinary claim and I am amazed that officials of the Treasury are ready to do so â.
She added: “The truth is that the biggest threat to the economy is the perilous state of the euro, staying in the EU means locking yourself into a currency zone, which Mervyn King, the ex- Governor of the Bank of England, has rightly warned that “could explode”.
“The safest option in this referendum is to take back control of the huge sums we send to Brussels every day and vote the holiday on June 23.”
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Jamie Durham, economist at PWC, said: âThese numbers seem to confirm that the market remains warm, despite the fact that the housing market was effectively closed in April of last year, making comparisons difficult to read.
“We expect these forces to continue to support price growth over the coming months.”
And the ONS said: âAverage UK house prices fell during April, ending 11 consecutive months of growth.
âHouse prices continued to rise from last year, with London again posting the lowest annual growth, most noticeable in the central London boroughs. “