Leading Essex & Hertfordshire estate agent Mullucks Wells has responded to the latest Rightmove House Price Index, which indicates that this month has recorded a record drop in August property prices.

The largest monthly sample of residential house prices has seen the asking prices of property coming to market cut by 2.9% - the biggest fall Rightmove has ever recorded in August.

Mullucks Wells Residential Director William Wells said: “We would expect to see prices soften a little during the holiday month of August anyway. But this larger than usual fall is probably down to three key factors.

“Firstly, the 2014 property market has never been as uniformly good as it has been publicly presented. There are always pockets of difference around the country - and indeed the region - where a ‘one size fits all’ approach simply doesn’t suit. So more rural areas with fewer transport links or less good schooling will always find the property market is more competitive.

“Secondly, being so close to London, it’s no surprise that a cooling market in the capital has an impact here. When city buyers perceive that it has reached a peak – as it seems to have done – prices almost inevitably drop back.

“Finally, there are genuine concerns about higher interest rates. We’ve had a 0.5% base rate for over five years now and only time will tell how much this has been responsible for rising property prices. But now the Bank of England is acting responsibly, encouraging lending sources to tighten their criteria and make sure home owners will be able to afford their mortgage payments once interest rates rise again.”

Rightmove measured 127,435 asking prices, accounting for around 90% of the UK market. The properties were put on sale by estate agents from 13th July 2014 to 9th August 2014. Nationally, the fall in asking prices equates to a cut of £7,758 off the price of the average home.

William Wells added: “The part of the market where we’re continuing to see strong demand is in the lower third – where first time buyers, second time buyers, upsizers, downsizers and buy-to-let buyers are all feeding from the same limited pool of properties.”