House prices in England and Wales fell slightly in August, according to figures from property research company Hometrack, offering another sign the market may be cooling in the face of higher interest rates.
Hometrack said its measure of average house prices, based on agreed sales reported by estate agents, fell 0.1% in August - the second monthly fall in a row.
The survey follows a series of data in recent weeks suggesting that five interest rate rises from the Bank of England since November are starting to tame house price inflation, which in July topped 20% annually by some measures.
The biggest price falls were in London and the southeast, while a dearth of new buyers has also helped create a 'significant excess of supply', the survey said.
'Recent interest rate rises continue to take their toll on the housing market. House prices are now very near their peak in terms of affordability and the recent housing boom now appears to be well and truly over,' said John Wriglesworth, Hometrack's housing economist.
But the Hometrack figures are not seasonally adjusted, and commentators say may overstate the degree of cooling in the market. The summer is often a slow time for house sales and an easing in prices is often seen.
