The pressure on house prices is expected to continue over the next 12 months as competition among sellers intensifies.
The rapid rise in interest rates has pushed up the cost of mortgages and weighed on both transaction volumes and prices.
Rightmove, the property search website, believes that the average asking price for a property will be 1 per cent lower nationwide by the end of next year, with sellers probably needing to market their homes more aggressively to secure a deal.
Prices have held up better this year than Rightmove expected. A year ago, the property specialist predicted that the average asking price would drop by 2 per cent, but they are only 1.3 per cent lower year-on-year. However, the average time for a seller to find a buyer has jumped from 45 days a year ago to 66 days.