Osborne: Leaving EU could hit value of people's homes

House prices could be affected by a Brexit says George Osborne. Credit: ITV

Chancellor George Osborne has said it would be 'catastrophic' if Britain left the EU and that the impact of a Brexit, and leaving the single market, could even hit the value of peoples' homes.

Speaking on Peston on Sunday he said: "The value of people's homes will be affected and people trying to get on the housing market will be hit because mortgage prices will go up.

"This is an example that this isn't just a big question of who we are at the moment, it also goes to the heart of people's financial security."

Asked by Robert Peston if he was saying house prices would fall if we left the EU he added "I am pretty clear there will be a significant hit to the value of peoples' homes and to the cost of mortgages."

The chancellor said the cost of mortgages will also be affected. Credit: PA

The chancellor's comments came ahead of a new finance ministry report on the short-term effects of leaving the EU on Britain's economy which will be published in the next few weeks.

The wide-ranging interview also covered a number of subjects including:

  • Goldsmith's mayoral election defeat

Responding to criticisms that London mayoral candidate Zac Goldsmith's defeat was down to a "dog whistle" campaign, Mr Osborne said: "I don't accept that at all".

Sadiq Khan delivers his victory speech after being elected London's new mayor. Credit: PA

"I went campaigning with Zac, when I was with him he was arguing for more infrastructure in London, we were talking to young tech entrepreneurs in London, there was a positive campaign there but obviously it didn't work in the end."

  • Not in the job to "coast along"

Mr Osborne also said he does not want to do his job to "just to coast along and try and avoid making any errors and play it completely safe in the hope that I might move next door in some point in the future."

"I’m in this job to make changes. I’m not going to pull my punches making those changes," he added.

  • Osborne "very happy" member of Cameron's team

When asked whether he was preoccupied with thoughts of becoming Tory leader, Mr Osborne said: "The truth is I'm not because I'm a very happy, content member of David Cameron's team.

George Osborne said he was 'very happy' in David Cameron's team.

  • Cameron likely to stay on until end of the decade

Osborne said he did not envisage a Tory leadership election until much closer to the 2020 general election.

"There will be a leadership election at the end of this decade, we've got a lot of work to do before then."

He added: "It will be at the end of this decade in my view, when David Cameron says he wants to go."

  • Slip of the tongue or endorsement for Hillary Clinton?

Mr Osborne also appeared to back Hillary Clinton's bid to become US president, when he said: "We look forward to working with whoever the next president is, whoever she may be."