A further increase in the number of homeowners putting their properties up for sale has pushed house prices down for the second consecutive month.
According to the Royal Institution of Chartered Surveyors (RICS), house prices are slipping in all regions of the UK apart from Scotland.
The number of surveyors who reported prices falling outweighed those who said prices were rising in August by a level not seen since May 2009.
A combination of an increased number of sellers and a slowdown in demand from buyers has created a larger pool of houses for sale, and consequently prices have dropped.
However, although the number of newly agreed sales fell to its lowest reading since August 2008, future expectations for sales have begun to pick up.
The optimism has been attributed to the view that a dip in house prices will begin to tempt more buyers back to the market over the coming months.
Despite the positive expectations, RICS said that a lack of available mortgage deals and the state of the economy could still hold the market back.
"There can be little doubt that the restrictive attitude to the provision of mortgage finance will continue to limit transaction activity in the market," said RICS spokesperson Jeremy Leaf.
"Looking forward, our price indicators are telling a mixed story which is consistent with the uncertainty hanging over the economy, the low level of interest rates and the lack of new house building."
Although the number of mortgage deals available in the market is not as high as it once was, there are still some terrific mortgages out there.
Yorkshire Building Society currently offers a Two Year Fixed Rate Mortgage at 2.89%, while ING Direct has a similar deal at 2.99%.
Or if variable rate mortgages are what you're looking for, HSBC and first direct are both currently offering cracking deals for term, at 2.19% and 2.89% respectively.
Find the best mortgage rate - Compare best selling mortgages
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