Property sales may fall by up to 40% this year, because of the credit crunch, the Royal Institution of Chartered Surveyors (Rics) has claimed.
In its updated forecast for the housing market in 2008, Rics also predicted that prices would fall by up to 5%.
The slowdown has also led to removals firms seeing a slump in business, and building firms are also feeling the pinch.
Rics chief economist Simon Rubinsohn said the outlook was worrying.
“Money looks set to remain tight and many will continue to find that access to the market is restricted by cautious lenders,” he said.
“This could have important ramifications for the wider economy,” he added.