More than £30,000 will be wiped off the average value of a UK home by the coronavirus crisis as the property market is brought to a standstill and incomes fall, the Centre for Economics and Business Research (CEBR) has warned.

Its economists predicted that prices will tumble by 13pc by the end of 2020 as transactions dwindle and home buyers are hit by a deep recession. A slump that deep would push the average house price to the brink of falling below £200,000.

The CEBR warned that owners of rental properties and home owners in regions with the most vulnerable jobs markets will be the hardest hit by the fallout of the coronavirus.

Its economists said a squeeze on incomes caused by the coronavirus crunch “has a tremendous potential to disrupt the UK’s housing markets”. Employment in Yorkshire and Humber and Northern Ireland is expected to be most affected from a sudden stop in economic activity….