Property Experts See a 1-in-3 Chance of a London House Price Crash
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If Britain leaves the European Union without securing a deal, house prices in London could take a turn for the worse, according to a Reuters poll of real estate specialists.
Some 30 property analysts contributed to the average data from the poll, which revealed that prices in the U.K. capital are expected to fall by 1.6 percent this year and 0.1 percent in 2019.
The most startling find, however, was that among respondents there existed a one-in-three chance of a "significant correction" in London house prices by the end of next year. One analyst even suggested the likelihood of an incoming crash at 75 percent.
The average asking price for a home in London during August was £609,205 ($785,336). According to the U.K.'s Office of National Statistics (ONS), the average salary in the city in 2017 was £39,476.
Survey respondents from Reuters poll indicated that there is growing doubt among overseas buyers, who are wary about Brexit uncertainty, despite sterling's relative weakness. Meanwhile, the British pound maintains its positions around one-year lows versus both the euro and U.S. dollar.
The Reuters poll included a section to rate the level of London house prices on a scale of one to 10, with one being extremely cheap and 10 extremely expensive. The median response across the board was nine.