London

LONDON homebuilders are offering to pay sales taxes, give away £20,000 (S$35,732) worth of furniture and the chance to win a free parking space as Britain's vote to leave the European Union damps demand.

An economic contraction means that residential property values in London will probably fall as much as 10 per cent next year and UK homebuilder sales will drop by 5 per cent, according to Barclays plc analyst Jon Bell. That means more competition among developers, who are building a record number of high-end homes in London for those brave enough to purchase as the economy weakens.