House prices are expected to fall by an eye-watering 13% this year due to coronavirus uncertainty.
The housing market's collapse will be sparked by plummeting incomes and job losses as the pandemic wreaks havoc on the economy,
The national lockdown to try and slow down the contagion has been dubbed "a major economic shock" by the Centre for Economics and Business Research (CEBR), who made the prediction.
It comes as businesses warn of thousands of redudnancies once the Government's Jobs Retentions scheme comes to an close in June.
The CEBR said coronavirus will send shockwaves through almost every town, city and industry in the UK, even after lockdown measures are relaxed.
But it said house prices will fall hardest in Yorkshire and the Humber and Northern Ireland.
The two areas have the highest proportion of jobs in industries hit hardest by coronavirus shutdown – manufacturing, construction, retail, and hospitality - totalling 60% and 59% respectively.
Following them will be Wales and the East of England, where jobs in the hardest hit sectors make up 55% and 54% of the overall workforce.
The national average for the number of workers in the most affected sectors is 48%.
"Although the government have offered up a vast package of support, this lack of demand will mean some businesses cease to operate, many workers will lose their jobs and a lot more will face a cut in incomes," the CEBR warned.
"Housing is the single biggest expenditure item for faced by most households, which means that the shortfall in incomes has a tremendous potential to disrupt the UK’s housing markets."
More than 1.2million people have been offered a mortgage holiday to help cover their bills during the coronavirus pandemic.
Repossessions have also been frozen in another temporary measure.
In all, the CEBR estimates that the average UK worker will lose 35% of their income over the next four months.
It comes as latest figures show 9million workers will end up on furlough during the crisis - forcing many to take a pay cut.
Under the scheme, the government will pay up to 80% of wages, up to the value of £2,500 per month, equivalent to the average UK salary of £30,000.
Businesses are now calling for ministers to extend the wage subsidy scheme to help prevent thousands of redundancies.
Experts say that without guidance from the Government by April 18, many will struggle pay their staff after June.
This is because firms legally have to give their workers a 45 day notice period before making them them redundant.
