There is more evidence that the UK property market is not getting out of control with the latest data from Rightmove showing that asking prices are at a virtual standstill this month.

They increased by just 0.1%, or £272, month on month with more regions seeing a fall than an increase. Most notably London saw a fall of 0.5%.

According to Rightmove the figures shows that there are signs of a return to a more balanced markets in terms of supply and demand and the fall in London is a combination of buyer reluctance and a surge in new sellers with their numbers up 20% in the city.

It also says that many committed and motivated buyers have already bought, releasing some pent-up demand and contributing to a slowdown in buyer activity while prices in some areas, particularly London, may have hit an affordability cap.

An examination of the data since the start of the year shows that this is the first time that prices have slowed this year and while demand usually cools over the summer months, this marginal increase is below June’s 0.6% average over the last 10 years.

‘The London market powers the rest of the UK but is starting to run out of steam. While the legacy of rises in central London continues to ripple out to its better value commuter belt, fuelling price increases in all southern regions, London itself is now marking time. It’s an example to the rest of the country of what happens when affordability and common sense get stretched too far,’ said Miles Shipside, Rightmove director and housing market analyst.

He also pointed out that the timing of the Mortgage Market Review, more property for sale in all regions, and a tail-off in pent-up buyer demand are alleviating some of the upwards price pressure.

‘This will come as a relief to the Governor of the Bank of England and the Financial Policy Committee, who have cited an overheating housing market as a serious threat to economic recovery and have further powers to use should it get out of hand,’ added Shipside.

He also pointed out that there are early signs of upwards price pressure being reduced by a better, albeit belated, balance between supply and demand. ‘Those buyers who are the first to react to an upturn often have nothing to sell, and there is a time lag before existing home owners are ready or able to commit to trade up, down or out in the marketplace,’ he said.

‘Better selling conditions in the first half of this year and increased confidence to take on the commitment of moving have finally unlocked more supply with new seller numbers up by an average of 9.6% year to date compared with 2013. All regions have also recorded a month on month increase in properties coming to market, with the capital seeing the largest jump in new sellers, up by 23.2%,’ he added.

He explained that more supply means more…