Online estate agent Rightmove reported that house prices fell in August and were at a virtual standstill on an annualised basis as the market entered a quieter holiday season.
Rightmove's house price index showed a downward move in monthly prices as "stretched buyer affordability" and the clouded political outlook acted as a brake on growth.
National average asking prices
The average asking price in August fell 0.9% month on month after rising by 0.1% in July. This left annual house price growth at a cool 3.1%.
Rightmove calculated the average asking price for properties in the UK at £313,663, driven by a 0.1% rise in "top of the ladder" sales.
The average asking price for properties sold to first-time buyers fell 1.7% and properties sold to "second-steppers" fell by 0.4%.
The estate agent said market fundamentals remained strong, and reported robust demand in an environment of lower interest rates and low unemployment.
Supply, however, was failing to keep pace.