The UK housing market is set for a decline in sales as buyers "wait and see" what will happen after the Brexit referendum vote, according to property experts.
It has been suggested mortgages could be more expensive and harder to obtain as lenders plan to tighten controls on lending during the period of uncertainty.
The London property market is expected to be the hardest hit after demand outstripped supply forcing prices to skyrocket.
Much of the strong demand in London has been down to foreign property investors seeking a "safe haven" for their cash.
Richard Donnell, insight director at property analysts Hometrack, said the immediate impact of the vote "is likely to be a fall in housing turnover and a rapid deceleration in house price growth as buyers adopt a wait and see approach to the short term impact on financial markets and the economy at large".
"The decision to leave the EU will be most keenly felt in the London housing market which is fully valued and already facing headwinds. History shows that external shocks can reduce sales volumes by as much as 20% with sales volumes already down over the last year," he said.
"House price growth is already weak and running in low single digits in central London areas and modest price falls now appear likely in higher value markets as prices adjust in the face of lower sales activity."
A report from real estate agency Knight Frank said that as well as buyers being affected, the uncertainty could also make sellers more reluctant to put their property on the market, "and this lack of supply will provide a floor under prices".
Knight Frank also said there is a chance that mortgage rates may become "detached" from the Bank of England base rate, which is currently sitting at 0.5%.
Lenders have offered some of their cheapest ever mortgage deals in recent years against the background of low interest rates.
Knight Frank, however, suggested that while the base rate could be cut further, lenders may actually start raising their mortgage rates as a technique to control their lending levels.
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