Thursday, 6 December 2018

Housing Associations Must Prepare For ‘Disorderly Brexit’, Warns Regulator


Speaking at the Social Housing Conference, Simon Dow, interim chair of the regulator, said stress-testing and preparing for the worst-case scenarios was vital for housing associations. Mr Dow referred to the Bank of England’s scenarios, picking out specifically its predictions for what would happen to the economy in the case of a “disorderly Brexit”. According to the BoE, a “disorderly Brexit” would see GDP fall by 8%, unemployment would almost double to 7.5%, inflation would soar to 6.5% and house prices could fall by up to 30%. The Bank said it would then have to raise interest rates to 5.5% in order to compensate for the shock to the economy. Read more on Inside Housing.

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