House prices slipping in wake of warning about market on verge of collapse
House prices could collapse, it has been warned (Picture: PA)

A well-respected report is expected to show that house price rises are slipping in the wake of warnings that the market is on the verge of collapse.

The UK Residential Market Survey will show a dip in the number of chartered surveyors in the UK reporting house price rises in the UK.

It comes a week after Prof Christian Hilber from the London School of Economics warned that a recession induced by Brexit could lead to a severe downturn in the house price market.

According to the Mail on Sunday, the data from the Royal Institution of Chartered Surveyors will show that activity has slowed following the general election.

Howard Archer, chief economic adviser to the EY Item Club, said: ‘I expect the survey to be pretty soft on the activity front again, with buyer enquiries, agreed sales and instructions to sell all muted.

House prices slipping in wake of warning about market on verge of collapse
The number of regions reporting a rise in prices, is expected to fall (Picture: Photofusion/REX/Shutterstock)
House prices slipping in wake of warning about market on verge of collapse
(Picture: PA)

‘It may well be that heightened uncertainty after The survey’s headline figure, a balance of surveyors who have seen price rises in the past three months against those who saw falls, is set to be +15, down from +17 in May.’

Speaking last week, Paul Cheshire, a former government housing adviser, also warned that the property market could tumble.‘We are due a significant correction in house prices. I think we are beginning to see signs that correction may be starting,’ he said.

‘Historically, trends seem always to start in London and then move out across the rest of the country. In the capital, you are already seeing house prices rising less rapidly than in other parts of Britain.’