House price growth has slowed to the lowest rate since November 2005, according to Hometrack.
August has seen monthly growth of just 0.1 per cent, down from a recent high of 1.8 per cent in March.
Hometrack says it is the fifth consecutive month of slower house price growth, indicating a deep-rooted slowdown resulting from increased pressures on affordability and more cautious buyers.
London is the only region to record a price increase for August and three regions, Yorkshire and Humberside, the North and South West, have seen price falls of 0.1 per cent.
Director of research Richard Donnell says: “The housing market faces a testing time over the rest of the year.
“The increases in interest rates over the last 12 months have pushed average debt servicing costs to a 15-year high and this will continue to take its toll on levels of market activity and house price inflation over the next 12 to 18 months.”
Hometrack’s survey shows that the proportion of asking prices being achieved has slipped back to 94.9 per cent from a recent high of 95.6 per cent.
Donnell says: “Despite weaker market sentiment, demand for housing still exists but buyers have become far more sensitive to prices.
“The net result will be a continued slowdown in the headline rate of growth, with asking prices coming under the greatest pressure in the months ahead.”