The average property price in London is down 3 per cent to £507,967 while the average first-time buyer property price reached a two-year high at £160,218.

Estate agency Haart found that on an annual basis house price growth remained strong, up 6.9 per cent annually in September UK-wide and 19.8 per cent in London.

Ten potential buyers are chasing each new property instruction across UK, compared to eight buyers chasing every instruction two years ago. In London, 16 potential buyers are now chasing each property instruction.

Paul Smith, CEO of Haart, said: “Although our data shows a small slowdown in house price growth on a monthly basis, this must be taken in the wider market context. Good mortgage deals are still very much on the table and interest rates aren’t going up for the foreseeable future. We have 10 buyers chasing every new property instruction UK-wide so sellers shouldn’t start sneezing yet. The run up to Christmas has already begun and the market remains strong.”

But Smith warned that the conference season had highlighted the political parties were falling short on housing policy

“The so called ‘mansion tax’ has rightly come in for some stick not least for being a tax on the South East,” he said.

“And a proper house building programme, the long-term key to keeping prices from spiralling, was barely mentioned in any concrete form.”