Nearly three-quarters of houses sold in January were sold for less than asking price as buyers start to negotiate again.
This is the latest sign that the housing market is cooling, following news that gross mortgage lending slumped in January.
As the general election approaches both supply and demand have fallen from levels seen throughout 2014, according to the National Association of Estate Agents (NAEA) January Housing Market Report.
NAEA member agents found that 73% of homes were sold for less than asking price in January.
That is 17% more than the same period last year, when 56% homes were sold for less than originally priced.
This suggests that power is returning to the buyers' hands and they're in a better position to negotiate, the NAEA said.
This may actually be driving sales, with the average estate agency branch selling eight houses in January, compared to the seasonally low five in December.
Mark Hayward, managing director, National Association of Estate Agents said: "Stamp duty reforms have already created movement. Following this, sellers may have hiked up prices to take advantage of buyers' increased budgets.
"But it seems buyers are counter-acting this by negotiating prices down to opposed to paying over the odds for their dream home, creating a real buyers' market.
"Hopefully further reforms around the general election will help to balance the deficit in supply and demand. Only time will tell."
Supply was down to 44 properties available per member branch, compared to an average 47 for the whole year in 2014 and 45 in December.
And the number of potential buyers registered per branch fell slightly from 360 in December to 353 in January.
Mark Hayward added: "The housing market is based solely on sentiment and if consumers feel an ounce of uncertainty, this will result in a temporary lull.
"With the general election on its way, we're starting to see the different political parties stowing up policies around housing, which is undoubtedly causing uncertainty."
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