"Owners of more highly-priced properties tend to prioritise their holidays over putting their property up for sale, which gives some anomalies in average prices in the most expensive boroughs at this time of year.
"The average fall in new seller asking prices at this time of year has been 2.2% over the last six years, so this month’s larger 2.6% fall highlights sellers and their agents realising that they have to reduce their asking prices as the market re-adjusts to a level to tempt back buyers in volume."
The European Union referendum meant an earlier start to the summer lull, as buyers hit the pause button ahead of the June poll, but the result has since encouraged "hundreds and thousands" of house hunters to search for potential bargains.
The recent interest rate cut could prove to be a further "confidence boost" and the pound's weakness will strengthen demand from some overseas investors, Shipside said.
"There is traditionally a market rebound starting in September so by autumn we should get a clearer view of the strength of any post-referendum hangover."
