House price growth turned negative for the first time since October 2005. 1.8% more Chartered Surveyors reported a fall than rise in house prices, down from 10.8 reporting a rise in July.
Demand continued to weaken as rising interest rates weighed on buyer affordability.
The trend was most prevalent in the West Midlands, the North West and East Anglia.
New buyer enquiries declined for the ninth consecutive month and at the fastest pace since August 2004 with potential buyers remaining cautious as the effect of interest rate rises filters through.