Property prices fell across the UK in August, according to new research from an estate agency.

Every region saw a drop but Team Association said it was particularly noticeable in London, where properties fell by 1.96 per cent and the west Midlands, where a decrease of 0.76 per cent was recorded.

The overall number of sales plummeted by 17.9 per cent in August from the same time last year, although there was a small month-on-month increase from July.

Alan Kirkman, director of communications at Team said: "It is clear to see that the property market is delicate at present with prices dipping and the desire to move waning due to the unsettling effects of Hips."

Although he cited recent "economic fluctuations" as contributor to the fall in prices, Mr Kirkman said he believes "the market will soon recover and Autumn will be healthy, providing no further interest rate [increases] take place".

The figures were released just days after estate agents Savills predicted that the price of high-end properties in London are set to fall as the effect of the credit crunch is felt.