The average house price will lose more than £6,000 in value before the end of the year according to new research.

Jones Lang LaSelle’s residential market forcast found that annual growth has slipped to 6.6 per cent compared to 10.5 per cent in April with a decline on current values expected of 3.9 per cent by the end of the year.

Simon Dicken, associate director in Jones Lang LaSalle’s residential development and investment team in Birmingham, said: “We are definitely seeing definitive signs of a slowdown in capital growth across the UK housing market.

"The simultaneous impact of weakening buyer demand and the increased level of property available for sale continues to place a downward pressure on pricing. While we are not expecting average house prices to fall dramatically, we are predicting a degree of pricing stagnation in the short term until the economic picture brightens.

"As a result, sellers will be forced to adopt more flexible pricing strategies over coming months as the balance of power once again shifts in favour of buyers.”