A leading Liverpool estate agent is warning that the current property boom will soon come to an end and house prices will crash when the coronavirus recession kicks in.

House prices jumped to a record high this summer after the biggest monthly rise in 16 years according to research released by Nationwide.

Online property portal Rightmove says that August was the housing market’s busiest month for a decade – but Lloyds Banking Group, Knight Frank and Santander have all warned that plummeting house prices should be expected.

Lloyds says that the worst case scenario is 20% over three years, whilst Knight Frank is predicting a slump of 7% this year and Santander is expecting a 6% drop. Brexit negotiations could lead to “further uncertainty and dampening growth”, the bank warned.

Adam Sutton, founder of Adam Sutton Estates, spent years working in the real estate sector in London’s Canary Wharf before setting up his own property selling business in Liverpool. The property expert says the boom won’t continue and is urging people to sell their properties now before property values collapse.

He says: “Houses prices plummeted by an average of 15% during the 2008 recession. The economic turmoil we saw then is similar to the financial disruption we are witnessing right now so it is inevitable that house prices are going to crash. We’ve seen a sales mini-boom this summer but it is unlikely to last. Property prices are soaring now but a crash is inevitable when the full effects of the recession kick in.

“It isn’t scaremongering. We’ve seen property prices fall in the aftermath of every major recession and all the indications are that the economic climate is going to get even worse in the months ahead with the furlough scheme coming to an end, mortgage holidays ending, businesses closing and the consequential rise in unemployment. Some people will struggle to keep a roof over their heads.

“I don’t want to be the bearer of bad news but my advice to anyone thinking of selling is to do it now, or face having thousands of pounds slashed from their property values. Time is also running out for buyers to take advantage of the government’s Stamp Duty cut.

“The consensus across the property sector is that house prices will fall. It could be far worse than property professionals are saying so I think it is right that I speak out and inform people. It is a gloomy outlook but current valuations are not sustainable amidst a global pandemic and what could be the worst recession in history.”

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