House prices are set to drop for the first time since 2012, as demand for property falls at its fastest rate in eight years.

A "short-term" dip in house prices over the next few months will come at the same time as rents continue to rise, according to the Royal Institution of Chartered Surveyors (Rics).

Price momentum and buyer demand have contracted and that is partly down to uncertainty surrounding the referendum on EU membership, according to Rics. The organisation also expects a lull following the rush to buy that occurred earlier this year, when landlords purchased properties ahead of a 3pc hike in stamp duty introduced in April.