“More downside than upside risks” in London housing market

25th July 2014

Deutsche Bank has warned that “the steam is being taken out of the London market”, with house prices slowing down ahead of potential falls in the future.

The bank said: "There seem to be more downside than upside risks to London housing going forward”. It claims a number of factors could lead to a market slump ahead, including a slowdown of global growth and a strong pound dampening demand among overseas investors. It also said that the withdrawal of stimulus measures from central banks could reduce house price inflation, and that a perceived lower level of risk in the eurozone could make “safe havens” such as London unattractive to investors.

Source:  The Daily Telegraph (19/07/14)