The housing market slowdown has continued to push property prices down, while annual price growth has decreased for nine successive months, according to new research.

A report by the Centre for Economics and Business Research (CEBR) showed the average house price fell by 0.7 per cent in May, with the average house costing £193,183.

The slump in price may give first-time buyers a chance to get on the property market as 11 out of 12 regions in the UK experienced a drop in prices in May – with the biggest fall effecting flats.

Commenting on the results Robert Bartlett, chief executive officer of Chesterton, said: "Buyers are still out there and with softening prices they are keen to buy, but due to credit restrictions, some are finding it difficult to progress purchases."

Some London boroughs experienced annual house-price growth, with the average property in Islington increasing in value by 21 per cent.

According to leading construction firm Knight Frank London properties in the £10 million-plus price bracket have seen the number of sales surge by 40 per cent on last year''s figures.