UK asking prices fell by £3,660 in September, according to Rightmove, taking the average to £310,003.

This is the first time in four years that asking prices have fallen in September, when the market usually enjoys a post-summer boost.

The monthly average was dragged down by a slump in London asking prices of 2.9%, the equivalent of £18,358. Five out of the six most expensive boroughs in the capital saw a fall in asking prices.

Rightmove said that if you take London out of the figures, the overall UK figure fell by a more modest 0.5% dip in September.

Annually, asking prices are up just 1.1%, while in London they have fallen by 3.2% in the last 12 months.

Miles Shipside, Rightmove director, said: “As we enter the Autumn selling season it is usual to see estate agents advising new-to-the-market sellers to push up their asking prices.

“But this year all four southern regions have seen new sellers asking less than those of a month ago, reducing the national rate of increase. There were Autumn price bounces nationally in 2014, 2015 and 2016, but the south of the country has turned this month into a bit of a damp squib, whilst some northern regions are still showing marginal signs of upwards price pressure.

“Estate agents are clearly advising many sellers that they have to lower their price expectations to fit in with buyers’ stretched financial resources, with that price compromise hopefully generating extra buyer interest.”

Wages keep pace

Annual average wage growth is now outstripping the annual rate of price increase in newly-marketed property, added Rightmove. It cites Office for National Statistics figures that said average annual wages have increased 2.1% for both the second quarter of this year and the month of July. At the same time the price of property coming to market is now growing at just +1.1%. This is the lowest annual rate of house price increase since February 2012 when it stood at +0.7%.

Shipside noted: “Average wage rises are now running at nearly double the annual rate of property price rises, and the longer any meaningful differential is maintained then the greater the improvement in buyer affordability. Having finally turned the tables to potentially improve their buying power, buyers will now be hoping that it is not eroded again by an interest rate rise or rampant consumer price inflation.”