Brexit has a myriad of impacts on the global economy, one of them was a huge hit to the UK's financial sector. Almost every major financial institution in "The City" took it; a few saw their valuations slide by as much as 15–25%. Real estate firms and home-builders were no exception. They lost 20% to 30% of their value in just two trading days. On a related note, major London real estate agent Foxton's issued a profit warning the day after the Brexit announcement. The company highlighted that revenues and adjusted earnings were going to be "significantly lower" than last year. The UK real estate market is set for tough times Single family home prices in the UK rebounded after the 2008 Financial crisis. Even though the prices continue to increase in the first half of 2016, many analysts believe that the UK real estate market is heading for an extended down cycle. High-end property sales in London had already weakened even before the vote, due to notably higher real estate transaction taxes that kicked in 2015. Savills UK head of research Lucian Cook explains why he expects a slump: "The prospect of an increase in mortgage interest rates and a reduction in wage growth is expected to create greater affordability pressures over the medium term, particularly in London where borrowers have stretched themselves further." Cook went on to add that an increase in interest rates is another risk factor. Leonard Steinberg, the president of major US real estate brokerage Compass, projects a 5% annual decrease in UK real estate sales for at least the next two years. He expects London to see the largest losses. source: Forbes
