Brexit May Spark ‘Substantial’ London House-Price Drop, UBS Says

London’s housing market faces severe price declines if the U.K.’s vote to leave the European Union triggers an extended period of economic weakness, according to UBS Group AG.

A severe recession could halt the “unsustainable price growth fueled by ample liquidity and tight supply,” UBS said in a report accompanying its Global Real Estate Bubble Index. London is one of six cities, led by Vancouver, considered at risk of a bubble because prices have increased by an average of 50 percent since 2011, according to the report.