A vote to leave the EU could result in the average UK house price being around £2,000 cheaper by 2018 than if the country chooses to remain, according to analysis.

Projections from the Centre for Economics and Business Research (Cebr) also suggest the average price of a property in London would be £7,500 less by 2018 in the case of a Brexit than it would be if there is a vote to stay.

Its report, compiled for the National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (Arla) found that in a remain scenario, the average price of a UK home is expected to increase from £278,500 (2016) to £303,000 (2018).

But in the case of a Brexit vote on June 23, property values are expected to climb more slowly, reaching £300,800 on average in 2018.

In London, which has been seen as a "safe haven" for foreign property investors, a Brexit effect is expected to have a more pronounced impact on property prices.

Cebr said that in the event of a vote to stay, London house prices would increase from around £536,000 on average (2016) to £599,200 (2018). But in a Brexit scenario, the average London house price could be £7,500 cheaper in 2018.

House prices in London could be particularly affected as international investors may no longer consider property there a safe haven investment and foreign companies with European headquarters in London may choose to relocate, reducing demand for properties, the report said.

However, if sterling weakens against other major currencies, the London property market may in the medium term see a rebound in foreign investment, as prices would become relatively cheaper for foreign buyers, the report said.

The report also warned a vote to leave could potentially impact on the construction sector's ability to build new homes and exacerbate skills shortages, as one in 20 (5%) current construction workers were born in non-UK EU countries.

By Vicky Shaw, Press Association.