Royal Bank of Scotland chairman Howard Davies has warned that big banks are planning to shift “the balance” of their activity away from London’s financial district to the eurozone because of Brexit, according to a report by International Business Times.

Davies told a real estate conference that he has heard in his meetings with senior bankers of “current plans” to move the bulk of their financial activity outside of the City of London over fears they will lose free access to the Single Market in whatever deal is struck between the EU and Britain.

According to the report, Davies said: “The London property market may well not be so buoyant if we do have some downsizing of the City, which I expect to happen.

“And there are current plans by a lot of banks to move the balance of their activity that they undertake here into other eurozone centres, initially as a hedging strategy just in case they find barriers put up against them here.”

Davies added: “We are in a position where the froth has gone off the London property market.”