The finance chief of one of the world’s largest property groups says a correction in the property market across western countries including the UK is “only a matter of time.”
Nicholas Scarles, finance chief at Grosvenor Group - which owns an extraordinary £6.7 billion of residential and commercial property across the world - has told The Times that "the balance of probability has increased quite dramatically that there is going to be a correction of some kind ... it is only a matter of time".
Grosvenor manages billions of pounds in assets on behalf of the Duke of Westminster, Britain's wealthiest individual, mostly in Mayfair and Knightsbridge. A year ago it called the top of the prime central London market - a forecast which appears to have come true according to many estate agents.
Meanwhile Grosvenor Group’s chief executive, Mark Preston, has told the media that sales of office buildings and residential units have been slower this year than during late 2015 because “interest has chilled” thanks to Britain’s uncertain relationship with the EU.
“The uncertainty surrounding a referendum is unwelcome. It is affecting our business” - as evidenced by Grosvenor’s 22 per cent pre-tax profits fall to £527m.