In May 77% of properties sold were below the asking price, data from the National Association of Estate Agents shows.
Just 3% of sold properties exceeded the asking price, as the subdued market paused for breath before the General Election on 8 June.
Mark Hayward, chief executive, NAEA Propertymark, said: “As a rule of thumb, periods of political uncertainty impact the way buyers and sellers interact with the housing market.
“In May, it looks like new buyers were stalling their house search until after the election; however the number of sales agreed per branch increased meaning the political landscape hasn’t deterred all house hunters.
“Following the result of the general election, it will be interesting to see how the market reacts over the coming months as summer is peak house-moving season.”
Demand is down, as the number of house hunters registering per estate agency branch fell by 8% in May to 350, down from 381 in April.
However demand is still 15% higher than May last year.