The Royal Institution of Chartered Surveyors (RICS) reported its key gauge of house price growth slipped in July as political uncertainty and recent tax changes hindered the market.
RICS reported record low stock numbers and forecast a flat price trend over the coming months as sales activity continues to lack momentum.
In July, the RICS house price balance slipped from 7% to 1%, which signals prices were broadly flat over the month and represented the softest reading since early 2013.
Regionally, prices remained on a relatively firm upward trend in Northern Ireland, the West Midlands and the South West.
Conversely, the balance for central London remained negative – as it has for the previous three months – particularly for homes at the top end of the market.
The balance for the South East fell into negative territory to its weakest reading since 2011.
Contributors to the July survey were asked whether sales were coming in at the asking price. A third reported that the agreed price was up to 5% below the asking price, while 26% said it was between 5-10% lower.
Nationally, it was homes listed at above £1m that deviated most from the asking price.
"Sales activity in the housing market has been slipping in recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come," said Simon Rubinsohn, chief economist at RICS.
Halifax and Nationwide surveys
The RICS survey tallied with findings earlier in the week from Halifax.
Britain's biggest mortgage lender said on Monday that house price growth slowed to its lowest rate in four years.
Halifax said that on average prices rose 0.4% in July, pinned down by low mortgage rates and a shortage of homes for sale.
The annual rate of house price growth, on a three-month rolling average, slipped to 2.1%, down from 2.6% in June.
Meanwhile, Nationwide's rival house price index recorded a 0.3% monthly increase, and an annualised rate of growth of 2.9%, down from 3.1% in June.
"One reason for this [lower growth] is the recent series of tax changes, but this is only part of the story. Lack of new build in the wake of the financial crisis is a more fundamental factor weighing on the market," said Rubinsohn.
In early trade on a broadly lower FTSE 100, the three biggest UK house builders by market capitalisation were all lower.
Persimmon, Barratt Developments and Taylor Wimpey were all between 1.6%-1.9% lower.