An agent has warned that the London market could be on the verge of collapse, with the rest of the UK set to follow.
Robert Nichols, managing director of Portico – an agent which says it does not mind going against the grain and will not talk the market up – says history looks like repeating itself.
He says that current market conditions echo those of 2007.
Nichols said: “The trend that started in central London last year has now spread to 31 out of 32 London boroughs which now have significantly reduced transaction volumes.
“In fact, Westminster has already experienced a 50% reduction in transactions over the past 12 months, which is precisely the point at which prices started to tumble in the 2007 crisis.
“If London volumes continue their decline, then prices are likely to follow and history may well repeat itself.
“Where the London market leads, experience shows that the rest of the UK could follow.
“Looking at this latest research, we believe it is increasingly likely that the London market will see an imminent price correction across the board before volumes begin their recovery.”
The research, presented to a meeting this week of National Landlord Association members in London, says that central London has shown a “dramatic volume decline” with a “risk of contagion”.