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I'd agree that properties are overpriced, I'm just not convinced that Brexit will break the market that much. As it says, even the BoE stress test scenario is only predicting a 35% drop in prices.
My understanding is that the 35% drop is not their prediction - it's what they tested the banks as being able to survive. It's a mix of 40% off commercial and 33% off residential, making that 35% figure, and the test is if that's written off each banks asset balance, can they survive it.
If prices go back to 2010 levels then that stress test is obviously inadequate, if prices only drop 20% then the banks will be fine - theoretically.
Dammit
I'd agree that properties are overpriced, I'm just not convinced that Brexit will break the market that much. As it says, even the BoE stress test scenario is only predicting a 35% drop in prices.