England and Wales’ Council for Licensed Conveyancers (CLC), which regulates conveyancing firms, has recommended solicitors prepare for a 40 per cent fall in deals.

The CLC said there was a “growing consensus” that property transactions will decline. “Some of you [members] are telling us that there is already evidence of that,” it said.

Rising interest rates, a recession, the paucity of mortgage deals and a declining supply of properties would all lead to fewer transactions.

Mortgage rates have risen above six per cent for the first time since 2008 and are expected to continue to rise.

The CLC said: “All law firms should consider how they would respond to a significant downturn in the economy.

“Those that are focused significantly or entirely on conveyancing would be wise to prepare a contingency plan that sets out steps they would take to protect the business in the event of a fall in transaction volumes similar to that seen in 2007 to 2008 – a 40 per cent decrease.”