UK housebuilders’ shares tumble on gloomy house price predictions

Shares in UK housebuilders slumped to their lowest level in almost a decade on Friday after HSBC published analysis predicting house prices in London could fall by as much as 15 per cent.

The research forecasts that demand for UK housing will fall 20 per cent from this autumn because of rising mortgage rates and inflation.

HSBC expects average UK house prices will fall 7.5 per cent outside London, while prices in central London will drop…