The average house in Britain will be worth £220,000 this year - up £9,000 on 2016 levels - as the property shortage continues to drive values higher.

New forecasts by the Centre for Economics and Business Research (CEBR) predict a 4.4pc rise in 2017, the lowest level since 2013 and significantly below the increases of 6pc to 8pc seen in the intervening years.

The think-tank’s economists attribute the slowdown to a combination of pay rises failing to keep up with inflation as economic uncertainty over the Brexit vote weighs and higher levies on property such as increased stamp duty on second homes.