Analysts at Société Générale are warning that home prices in London could fall by more than 30%, and in parts by up to 50%, following the vote to leave the European Union.
The firm said it sees a classic housing bubble in London, and Brexit as the correction trigger. Given the ratio of prices to incomes, a 40%-50% price correction in the most expensive areas does not seem impossible.
Barclays analyst Jon Bell, meanwhile, is predicting a 5% fall in homebuilder sales. This is despite homebuilders offering a variety of incentives to counter waning demand for properties in the capital, including offering to pay stamp duty or providing furniture packages worth £20,000.
Click here for the full Bloomberg article
