Knight Frank has said that September will be a “pivotal month” for the housing market and give an indication of the autumn selling season.

The firm says that while “a recession for the UK seems a real possibility, what appears less likely is an economic crisis, as being suggested in the days following the referendum.

“But just because the worst of the original Brexit predictions for the economy haven’t transpired, it doesn’t mean the property market is guaranteed a smooth ride.”

Saying that property taxes have had as big an impact on the prime market as the referendum, it confirms that prime market sales are down a fifth year on year.

However, the firm points out that £1m-plus property sales have not collapsed, but are equal to levels seen in 2011 and 2012.

Knight Frank says it has decided to revisit its forecasts in the autumn.

Its current forecasts, last updated in March, predict UK house price inflation at 3.9% this year – and in London 5%.