Average selling prices are no longer higher than asking prices for properties worth up to £500,000, according to half of surveyors polled by the Royal Institution of Chartered Surveyors in July.

The RICS also found that sellers with properties costing £1m or more are having to accept lower offers, as the heat starts to come out of the UK housing market.

Demand down

In its residential market survey for July, the RICS found new buyer demand has edged down, although it said that the limited supply of homes continues to underpin market pricing. In fact,stock levels are close to all-time lows.

Sales are also easing, according to surveyors, as the cost of living crisis and higher interest rates start to impact households.

It stressed that “for the time being at least”, prices continue to rise across all parts of the UK.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “Bidding wars are increasingly giving way to more cheeky offers, particularly on pricier properties. Half of agents say that properties under £500,000 are no longer selling for more than the asking price, while those priced at more than £1 million are being forced to accept lower offers. It’s another sign that the property market is starting to turn.

“Sales are also falling, and agents expect them to keep dropping in the coming months. Meanwhile, after such a long time of ever-increasing buyer numbers, we’ve seen a second month where fewer buyers are on the hunt for a home. House prices are still rising, because buyers still vastly outstrip sellers, but they’re starting to ease a little.

“Plenty of agents are feeling the impact of less demand. Others are highlighting that even when people decide to buy, life continues to get harder, so more sales are falling through as they worry about job security and rising prices. Some agents say that agreed prices are being renegotiated.

“However, it’s still a very mixed picture, and some agents say it’s as busy as it has ever been, and some buyers are in a hurry to snap up a property before mortgages get even more expensive.”

Emma Cox, MD of real estate at Shawbrook, added: “Despite well-documented challenges, the property market continues to show resilience, and many buyers remain committed to going ahead with their plans.

“Although we’re not out of the woods as the ongoing threat of a recession and rising cost of living may dissuade people from moving in the future.”