The Brexit effect on house prices

If the chancellor keeps going on about how Brexit will push down house prices, says Merryn Somerset Webb, Brexit may be exactly what he gets.

When David Cameron agreed to a referendum on EU membership, I suspect he thought it would be an easy win. He clearly doesn't now. The prime minister has rolled out every big hitter he can find to back his claim that British and global security will be at risk if we vote leave. But George Osborne has gone a step further straight for the thing the British care most about: house prices.

The chancellor reckons there will be a "significant hit to the value of people's homes and to the cost of mortgages" if we vote out. He may be right. But he may be wrong if Brexit is the disaster he says he expects, surely interest rates are more likely to fall than rise? If Brexit causes an EU collapse and security meltdown, might there not be a flood of French house buyers into the safe haven that is, and presumably still will be, London? House prices could go up, not down.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.