A Bear Market for 2018

Prime London home prices (Mayfair, Kensington, Belgravia, Chelsea) are now down 20% from their pre-Brexit peaks. Theresa May’s general election gamble and the surprising success of the Labour Party under Jeremy Corbyn has negatively impacted foreign investor sentiment, despite ‘cheap’ sterling exchange rates against the US dollar, euro, Russian rouble and Asian currencies. The fall in sterling has also led to a rise in petrol and food prices in Britain, historically the most inflation-prone economy in Western Europe.