House price momentum has gone back 16 months.
According to the latest Royal Institution of Chartered Surveyors (Rics) report, this is the third straight month that demand has slipped.
Simon Rubinsohn, chief economist at Rics, said expectations were that prices in London could drop over the next three months, as a greater balance between supply and demand would remove some of the upward pressure on prices.
He also indicated that he expected growth elsewhere in the UK to be around 2.1 per cent over the coming year.
Rubinsohn said the effect was particularly pronounced in the capital.
In London, caution took a particular toll, with prospective new buyer demand seeing its fifth consecutive monthly decline – a trend not seen since April 2012.Demand and supply are looking a little more balanced, which is removing some of the upward pressure in prices, particularly in London.
In Scotland, the effects of the referendum on independence appeared particularly significant, with a net balance of 6 per cent more surveyors reporting a drop in the number of interested buyers (compared to a net balance of 49 per cent seeing more interest in August).