London (AFP) - Asking prices for houses dropped a record 2.9 percent month-on-month in August, as the market calmed in London in particular, according to lettings and sales website Rightmove.
The fall was the biggest in Rightmove's records, which go back over a decade.
The biggest fall in asking prices was in London, where the average asking price fell 5.9 percent to Â£552,783, the website said. However, this still left asking prices at 10.3 percent higher than they were a year ago.
Industry figures said that while prices typically fall during the holiday period as fewer buyers are around, fears about a rise in interest rates due to comments from the Bank of England could be having an effect.
"Comments from the Bank of England mean that potential buyers are concerned about the rise in interest rates and don't want to find themselves in a position where they are hamstrung by rates going up," said president of the National Association of Estate Agents Simon Gerrard.
"Both buyers and sellers are becoming increasingly aware about personal finances," said Rightmove director Miles Shipside. "This limits what buyers are willing or able to pay, and helps moderate sellers' price expectations."