A vote to leave Europe would have very little effect on the UK housing market, Capital Economics has said.

The economic consultancy says a vote for Brexit is unlikely to trigger a collapse in the housing market or the general economy.

However, it cautions that the period before the referendum itself could cause uncertainty because firms and consumers might defer major spending decisions.

Agents Savills and Countrywide have largely voiced the same opinion – that uncertainty in the run-up to the referendum might slow the market.

Capital Economics does query: “With housing already looking very expensive, could even a brief rise in uncertainty and volatility tip it over the edge?”

However, it goes on: “Altogether, uncertainty in the short term might lead to a small drop in transactions and a slight easing in house price growth.

“But we think the prospect of Brexit driving a collapse in prices is slim.

“Rather, with prices very high compared to incomes, and being propped up by a shortage of homes for sale, a recession and rising unemployment that drove up the number of forced sellers and cooled buyer demand is probably the biggest risk.”

The consultancy says that a Brexit would not affect sales of properties to overseas buyers, who see London “as a safe haven due to its robust legal system, favourable property laws, stable governance and cultural draws”.

Capital Economics does, however, say that a Brexit would hit house building hard, because of the number of construction workers born outside the UK. Separately, Tony Pidgley of Berkeley Group has said that half his subcontractors are from Eastern Europe.

The think tank says there are few signs of a looming recession. Instead it says wages are likely to rise, mirroring house price increases.

* There is a current discussion by readers about the referendum on the Arena section of our site.