Britain's property market is going to have a flash crash this summer

Britain's property prices are going to fall for the first time since 2012 and London's house prices will be affected the most, says the Royal Institution of Chartered Surveyors.

Buyers are cautious due to the uncertainty surrounding the UK's referendum on European Union membership on June 23. RIC's chief economist Simon Rubinsohn said in his latest report that the new stamp duty tax imposed by the government on April 1 this year also has some bearing on the lack of demand and therefore the pulldown in prices.

But "there is not at this point a sense that a fundamental shift is taking place in the market," he added, which shows how property prices are likely to experience a flash crash - a short-term burst of cratering prices.

This might be a relief for people looking to buy in London as the price drop is going to be the greatest in the capital.

The average home in Greater London - which includes areas like Kingston and Croydon in the south, and Uxbridge in the north - is now worth £600,076, according to an analysis of the latest Land Registry data by property-focused asset manager London Central Portfolio.

Properties in London are now almost 60% more costly than they were prior to the 2008 financial crisis, according to the latest data from the Office for National Statistics.

It sounds like prices couldn't possibly fall due to the great imbalance between supply and demand, but RICS demonstrated across a number of charts how the price decline is already happening.