A slowdown in the construction output and sales of new homes following the vote to leave the European Union point to a major decline in house building, it has been claimed.

The National Housing Federation said the result of the referendum in June could wipe out more than a third of GDP growth (£142.5bn) and mean the loss of nearly 120,000 construction jobs.

Office for National Statistics data released on Friday showed housing construction fell 1.1% between the first and second quarter of this year.

However, the ONS  said there is very little anecdotal evidence at present to suggest that the referendum has had an impact on output.

A poll by Reuters of 60 economists also out on Friday suggested Britain has already entered a mild recession following the Brexit vote. They suggested the economy would contract 0.1% in this quarter and next. They also believed the Bank of England would reduce interest rates further in November.

David Orr, chief executive at the NHF, said: “We know that an uncertain economic environment will cause builders to put the brakes on.

“Our country’s prosperity and thousands of citizens’ livelihoods depend on a strong building sector – we cannot let a slowdown take hold.”

Shraga Stern, director of Decorean, a London-based construction firm, said: “We don’t believe there is a need for any panic in the industry. Historically, the broader industry experiences a dip in the summer months anyway, so we do not necessarily believe this has been caused by Brexit.”

The market should pick up as the year progresses, he predicted.