London property prices could halve by up to 50% if the Eurozone collapses, according to research by city consultancy Fathom.
Its report, In a Class of its Own? said that property prices in the capital's most sought-after postcodes have been driven up by foreign investors who have viewed London as a 'safe haven'.
The report found that since 1995, safe-haven flows have boosted the price of prime central London relative to the rest of the UK by just over 30%.
However, the research suggests that if the single currency zone fell apart, as a growing number of economists are now starting to predict, demand for London properties would start to drop.
Fathom said: "Although fears about a messy end to the euro debt crisis may account for much of the gain in prime central London prices that has taken place over the past two years, the break-up of the single currency area is perhaps the single greatest risk to London prices.
"In the worst-case scenario, we estimate that London prices could fall by 50% following a break-up of the single currency area."