How real estate prices could rebound if the UK leaves the EU

As the European Union’s economic crisis deepens, the prospect of a UK exit from the bloc could be on the horizon.

But with the pound, the euro and the single currency in a tailspin, the real estate market could rebound to some extent, according to an analyst at brokerage firm Cushman & Frierson.

Rising property prices in the United Kingdom, which is facing the biggest economic crisis in its history, could fuel a rebound in house prices, the brokerage firm said Tuesday in its report, Real Estate Rent and Landlord Rent.

With the UK’s housing market in shambles and a surge in demand, real estate rent is on the rise, the firm said, noting that this is likely to lead to a surge as the pound depreciates.

Rent in England and Wales is on track to rise by 2.7 percent this year, according the Cushmans Real Estate Research & Investment report.

But the report notes that this would not be sufficient to offset the decline in the pound.

The British pound, which has lost almost a quarter of its value against the euro in just three months, is trading at around $1.12.

The firm noted that while the British economy is “in a period of stagnation” and the country is facing a “severe recession,” the economy could see a “recovery in housing prices.”

“The economy may not recover as rapidly as it would if the pound fell further, but a recovery in housing demand could drive a boost in prices,” the report said.

This real estate broker is selling her home for $2,500 per square foot

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Read moreWhen it comes a realtor’s dream, it’s a house that you could never afford to live in, but you’re willing to pay a premium to have it.

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