House prices are expected to stay flat until the end of 2016, and in the worst case scenario could fall by five per cent, analysts have predicted.
The forecast comes from UBS Wealth Management, who have re-set their expectations for house prices due to the EU referendum.
UBS said London prices would fall faster than prices in other regions; property values in London peaked in August last year, UBS said, and have "significantly deteriorated" since then, reaching their lowest levels since 2008.
Caroline Simmons, deputy head of UBS Wealth Management's UK investment office, said: "The most important factor influencing the outlook for UK housing is how the economy reacts in the aftermath of the shock Brexit result.
"We expect GDP growth to fall in the second half of the year, and only stage a meagre recovery thereafter."
Although UBS Wealth Management believe "the supply of credit to the UK economy will be unhindered", the deterioration of consumer confidence and uncertainty over what the Brexit vote actually means is "likely to weigh on business investment and hiring".
UBS' verdict on the property market comes after Countrywide said prices would fall by one per cent this year, and that prime central London house prices would fall by six per cent.