Residential asking prices in England and Wales are an average -3.1% lower in August than a year ago, according to property website Rightmove.

That matched July’s annual fall, but a monthly decline of -2.2% in August more than reversed July’s +0.6% rise from June, leaving the average price of a home at £222,762.

London was the only region where house prices rose in August, up by +2.1% on the year meaning an average property now costs £387,265.

Rightmove believes that difficult lending conditions will prevent any sustained recovery in the housing market. In addition, Rightmove said the number of new sellers entering the market was down -23% from last year at 87,200.

Miles Shipside, Rightmove director, said: “Even with a return of equity, employment and wholesale mortgage funding, these levels of sellers may never be seen again.”