House prices fell by an average of 1.8% last month according to the UK's biggest mortgage lender the Halifax.
Martin Ellis, chief economist at the Halifax, said:'House prices declined by 1.8% in August.
'A solid labour market, low interest rates and a shortage of new houses continue to support the market.
'The pressure on householders' income, together with the reduction in the availability of mortgage finance due to the global financial markets crisis, is resulting in both lower property prices and activity levels.
'This week's announcement on stamp duty is a welcome development and will benefit a significant number of homebuyers, particularly outside the south east of England. Market conditions, however, will remain challenging.'
To read the full report from the Halifax CLICK HERE