Source: Sharecast
According to the latest UK residential market survey from the Royal Institution of Chartered Surveyors, agreed sales were also down, alongside a slowdown in new buyer enquiries.
The house price balance fell to -19 from -13 and -7 in July and June respectively, with respondents expecting further falls over the coming quarter.
The new buyer enquiries balance softened for the second month in a row, to -17 from -7, while agreed sales slid to -24 from -17.
There were also fewer fresh listings, with new vendor instructions easing to -3 – the first negative reading since June 2024.
Tarrant Parsons, head of market research and analysis at Rics, said: "With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty.
"Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time."
The Bank of England cut rates for the third time this year in August, to 4%. But they remain high by historical standards.
Inflation, meanwhile, currently stands at 3.8%, well above the central bank’s long-term target of 2%.
The rate-setting Monetary Policy Committee next meets on 18 September, but it is widely expected to leave the cost of borrowing on hold.
August’s residential market survey was based on 233 responses from 537 branches.
