Rightmove has claimed that asking prices in London have fallen this month as concerns over the affordability of homes in the capital deepen and more properties are put up for sale.
The property website declared that the market has come "off the boil", citing tougher mortgage rules and the prospect of rising interest rates alongside a 23% jump in the number of homes on the market.
London has been a particular concern among policymakers for the past year - with buyers forced to enter bidding wars for houses in a market lacking supply - conditions which have tipped purchasers into borrowing even more.
It was concern about loan-to-income ratios which prompted the Chancellor to agree new powers for the Bank of England to cap mortgages last week to help avoid the prospect of another market bust.
But Rightmove's report followed other recent studies which found evidence of cooling conditions.
It said that asking prices across England and Wales were at a "virtual standstill", rising by just 0.1% or £272 on the previous month to reach £272,275 on average.
While London recorded a 0.5% monthly decrease in asking prices, Rightmove said they were still up by 14.5% compared with June 2013 to now stand at an average £589,776.
The North West saw the sharpest month-on-month fall in asking prices, with a 1.8% slide.
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