But the good news is that the annual decline in prices has slowed and is down from the 4.3% recorded in the third quarter of last year.
There are also regional variations. Esher and Oxford continue to outperform the wider market, with annual price rises of 3.6% and 3.3%.
Stock volumes are up on the year, with a 15% rise in the number of new properties coming to the market, the index also shows.
Overall prices remain higher than at the last market trough in 2009, but have now been declining for seven consecutive quarters.
According to head to research Grainne Gilmore the increase in stamp duty for properties worth