House prices dipped in August for the first time in nearly two years and surveyors’ confidence in the price outlook dropped to its lowest level since June 2005, according to a survey published on Thursday.

The findings add to evidence that the housing market is slowing as lenders pass on the costs of interest rate rises and as the obstacles for first-time buyers increase. They reflect fears that conditions for buyers could toughen if the squeeze in credit markets spills over further into mortgage rates.