Talk About London Housing
London should brace itself for a “substantial” correction in house prices if Brexit forces the economy to stagnate, according to UBS.
A severe recession could halt the “unsustainable price growth fueled by amply liquidity and tight supply,” the Swiss bank said in a report today.
London is one of six cities considered at risk of a bubble burst because prices have increased by an average of 50 percent since 2011, the report said. Prices of homes in the U.K. capital have increased at a double-digit rate each year since 2013, decoupling prices from local earnings.