The fall in house prices slowed slightly in September according to figures from Rightmove Plc's House Price Index.
In September house prices fell by 1.1 per cent to an average selling price of £229,767. In August house prices dropped by a sharper 1.7 per cent to an average of £232,241.
Compared with the previous year however house prices rose in September by 2.6 per cent.
Rightmove's figures found that new sellers average asking prices fell by 1.1 per cent, the third monthly fall in a row.
In the last three months house prices have fallen 3.4 per cent, which Rightmove said meant that half of the gains made from price rises in the first half of the year had been wiped out.
In September 26,000 new properties came onto the market every week, the lowest figure since April. However the number of unsold stock per agent has stabilised at an average of 79, following six monthly rises.