Valuations across commercial and residential property alike are set to flat-line or fall over the coming six months, despite the longstanding situation of demand outstripping supply, the firm’s report said.

It found 54% of 83 surveyed property businesses felt SDLT represented the biggest barrier to growth, while 53% said the tax system is unfavourable to property developers and investors.

A further 12% highlighted capital gains tax as their biggest threat to growth, although Brexit concerns were high up business’s list of fears too, with 48% claiming the referendum result was unfavourable to them.

Nearly half (49%) said they expect UK house prices to fall over the coming six months.

Although most respondents operate UK-only businesses, given the uncertainty in the UK market some respondents admitted they were considering markets overseas, with 34% identifying Germany as a market of interest for its robust legislative structures and strong economy.

Stacy Eden, head of property and construction at Crowe Clark Whitehill suggested an overhaul of the tax system ‘must be high on the government’s agenda’, particularly in the context of Brexit.

‘A reduction in the tax burden will fuel growth and encourage investment. Cuts to SDLT should be the first step towards this, as we are already seeing the negative impacts of the recent raises on the property market.

‘Simplification to the planning process to promote efficiency and initiatives to regulate the market are also required. Ensuring that brownfield sites are available for development is crucial, and there is clear demand for this within the industry.’

Crowe Clark Whitehill's Property and Construction Outlook report can be read here.