Outside the possible influence the June referendum will have on the UK housing market, many estate agents and analysts believe this could be the beginning of the end of the house price boom across the country. The latest data suggests the slowdown in house price increases is upon us. According to the latest research from Royal Institution of Chartered Surveyors, house inquiries fell during the month of April at a rate only beaten by a month in 2008. Demand is showing obvious signs of a slowdown.

During the month of April, mortgage approvals fell almost 9% which is much higher than many close to the market expected. According to RICS, this was due mainly to the post period of the surge seen in March in order to beat the clock on the impending tax hike for second property purchases.

London has even experienced slowdowns which reflect the massive number of increases in property prices taken place in the capital city.

Richard Donnell of Hometrack commented on the latest data to surface, saying: “There are plenty of headwinds facing London irrespective of the referendum vote. It’s down to affordability — at some point you have to run out of buyers.”

Donnell added: “When sales volumes fall back, it is agents that start to re-price the market to get volumes back in a process that takes six to 12 months.

“They let vendors know that they need to be more realistic if they want to sell, taking on new instructions at lower prices.”

Lucian Cook with estate agency Savills, commented on the challenges to afford property for many, saying: “We are clearly hitting some affordability ceilings in London.”