The average property price fell for the third consecutive time last month, figures from the National Association of Estate Agents reveal.
Over three quarters of estate agents confirmed they believe prices have reached their peak.
Asking prices were on average 1.3% lower than the previous month and, further confirming the much-anticipated slowdown in the market, the annual increase in house prices was 8.5%, down from 10.3% the previous month.
In addition, 79.6% of estate agents believe that house prices have reached their highest point and will now decline.
Richard Hair, president of the NAEA, says: “This report reveals what is happening at the front-line of the market. The further dip in price rises seen this month shows the effect the Bank of England's interest rate hikes have had.
“Those who are realistic about prices are being successful while overpriced property is attracting little interest. While it is clear prices won't crash, there may be a further small correction before normal service is resumed.”