Morgan Stanley says fears over a possible UK exit from the EU and other global economic uncertainty could lead to “a 10% to 20% fall in new-build high-end residential pricing in 2016” with prime central London most likely to suffer.
The bank’s forecast - contained in a market note to investors on Capital & Counties, the developer of the new 7,500-home Earl’s Court scheme - includes the statement: “We worry about lower demand from unlevered buyers and more selling from levered buy to let investors from April owing to changes in buy to let taxation, at a time when we are nearing the Brexit referendum.”
Although the note suggests the London new build sector will recover in the long term, a report on the Morgan Stanley warning in London’s Evening Standard free newspaper says sales on the second phase of the Earl’s Court scheme have “ground to a halt ... since November.”
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Not much conflict of interest in this article then....
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