Experts predict London price crash in no-deal Brexit scenario

30 housing market specialists predicted that prices will tumble if Britain fails to reach a Brexit deal and expect an annual fall of 1.6% this year and 0.1% in 2019.

When asked what effect a disorderly departure would have on London prices, responses ranged from “short-term fall” to “damaging” to “disaster”.

John Charcol's Ray Boulger said: “In the short term the additional uncertainty will disproportionately affect London, causing the value of some properties, particularly high value properties, to fall further."

When asked about the likelihood of a 'significant correction' in London’s housing market before the end of 2019 the specialists gave a median of 29%, with the highest recorded at 75%.

When asked to rate the level of London house prices on a scale of one to ten, where one is extremely cheap and ten extremely expensive, the median response was nine, compared to a national average of seven.

Another Reuters poll predicted that the Bank of England will increase interest rates by a further 25bps in the second quarter of next year, taking Bank Rate to 1%.

Andrew Brigden at Fathom Consulting commented: “We see little upward or downward pressure on house prices at current near-zero interest rates. However, risks lie substantially to the downside.

“Were interest rates to return to pre-crisis levels or higher, which may prove necessary if there were a sharp fall in sterling after a General Election, for example, then house prices could fall by around 40%.”