If the UK votes to leave the EU house prices will drop by 5%, eMoov.co.uk has predicted.
If the UK votes to leave the EU house prices will drop by 5%, eMoov.co.uk has predicted.
The online estate agent reckoned the air of uncertainty will have a “detrimental” impact on the market.
This week Prime Minister David Cameron has been in Brussels negotiating a membership deal ahead of a potential referendum vote on 23 June 2016.
Russell Quirk, founder and chief executive of eMoov.co.uk, said: “eMoov believe that an EU exit would cause a nervous ripple effect across the UK, with homeowners and potential buyers choosing to baton down the hatches and weather the potential uncertain economic storm, before committing to such a notable financial decision.
“Will unemployment rise? GDP fall? Could exports fall, causing businesses to fail?”
He added: “Should the UK public vote 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.
“This air of uncertainty will lead to inaction amongst those looking to buy and sell and the resulting dwindle in demand, will always lead to a reduction in house prices. We believe it could easily drop by 5% maybe more, so the average UK homeowner could see their property reduce by £11,000 in value.”
eMoov’s recent survey indicated that the public disagree however, as 34% reckoned leaving the EU would increase the value of their properties compared to 21% who thought prices would fall.
