"No agreement to leave Europe" increased risk UK house prices fell far more than

Posted by qianjiu on August 8th, 2019

The British Prime Minister’s special envoy and senior EU officials have failed to restart the Brexit talks. There are signs that British Prime Minister Boris Johnson is preparing for “no agreement to leave the EU”. Or because the Brexit situation has made consumers more cautious, UK house prices fell more than expected in July.

According to the British "Guardian" report, the Royal Institution of Chartered Surveyors (RICS) pointed out that affected by the "no agreement" trend, the UK's economic risks have further increased, and house prices have continued to fall compared with June. The data showed that the RICS house price index fell to -9% from -1% in June, far exceeding economists' previous forecasts.

In this regard, RICS chief economist Simon Rubinsohn said that as the risk of Brexit exacerbated political uncertainty, house prices and sales seemed to be losing momentum. Rubin Thorne mentioned: "All key indicators are showing a slowdown."

Analysts stressed that in the absence of a decisive agreement in the UK, “no agreement to leave the EU” is likely to increase, and consumers are increasingly inclined to give up buying or selling homes. Retailers have also warned that in the context of Brexit’s risk to the economy, British households will control spending on large amounts of goods.

The latest data from Halifax, released on August 7, also showed that UK house prices continued to fall in July. The UK's largest mortgage lender said that the average price of homes fell by 0.2% in July after falling by 0.4% in June.

At the same time, house prices are still high relative to income, and more and more young people are unable to buy homes. According to government data, the number of people between the ages of 20 and 34 who live with their parents has soared by 24% in the past decade.

However, Halifax general manager Russell Galley believes that “economic uncertainty continues to have an impact on the market, but the overall trend is actually a relatively stable trend.” Sales have declined, but as wages accelerate and the Bank of England maintains its lowest interest rate since the financial crisis, new buying demand will gradually increase.

According to previous reports, Boris Johnson intends to negotiate a new Brexit agreement with the EU and announced that he will complete the Brexit by October 31. However, British official Michael Gove accused the European Union of not doing anything in an effort to reach a new agreement on August 6. EU officials said that Britain did not have the will to restart negotiations.

Boris has repeatedly stated that he will not sign a Brexit agreement including the Irish border reserve plan. The Prime Minister’s spokesperson recently stressed: “Even if the parliament voted against “no agreement to leave the EU” or voted and voted against the Prime Minister’s vote of no confidence, the UK will leave the EU on October 31, no matter what the situation.”

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