Almost 60% of surveyors are now reporting that the difference is declining, says the report published by the Royal Institute of Chartered Surveyors.
Across the UK properties are selling at an average of 11% below the asking price with sellers in some regions being forced to accept as much as 26% discount off their advertised price.
The worst affected area is the north where sellers are accepting offers, on average, at only 74% of asking prices. However, 63% of surveyors in that region did report that the gap is narrowing.
The north west of the country has seen a slight improvement. Although the market is still weak, sellers are accepting offers of 84% of the asking price compared with 82% last August.
In London the gap is the smallest in the country with sellers achieving 93% of the asking price and 55% of surveyors reporting that the gap had narrowed over the previous three months.
Scotland is the least affected region with sellers achieving sales at 97% of asking price with 75% of surveyors reporting that the gap between asking and selling prices has narrowed in the last three months.
'The improvement in sentiment that has been captured in recent housing market surveys is reflected in a narrowing in the gap between asking and selling prices,' said Brigid O'Leary, RICS senior economist.
'This is particularly interesting given that recent reports from Rightmove suggest that asking prices have been relatively stable since February. As new instructions continue to decline, a lack of supply is providing some support to house prices and that has helped to close the gap,' she added.
But O'Leary is still cautious. 'While the pace of the downturn may be easing, the housing market will still be challenged by an uncertain economic backdrop, the threat or rising unemployment and continued restrictions on mortgage finance,' she explained.
