According to the Royal Institute of Chartered Surveyors, 1.8 per cent more surveyors reported a fall in house prices than reported a rise, this August.

This compares with July when 10.8 per cent more surveyors reported a rise. RICS spokesman Ian Perry said: “Potential house buyers have become far more cautious as they wait and see what effect interest rates will have on household finances. “Affordability is at its most stretched in over a decade and many will worry that rising mortgage payments will prove a step too far.”

The survey of chartered surveyors found that enquiries from new buyers were falling at the fastest rate in 3 years. Perry added that he believed the market would soften further during the autumn.