Asking prices down 1.2% in July

Asking prices for houses for sale in London and around the UK have fallen 1.8 per cent so far in July, Rightmove has revealed.

The industry leader issued its latest house price index today (July 21), noting that the monthly fall amounts to the largest drop ever recorded in July - typically seen as peak season for home transactions.

It also follows a 1.2 per cent slide in June, prompting analysts to conclude that people with property for sale in London are beginning to face up to the reality of the downswing.

Overall, Rightmove said that average asking price for a property is now £235,219 - down by £4,345 over the last month.

And in a sign that the market instability looks set to worsen, that figure still remains dramatically higher than the actual price of £194,912 that the average UK home presently sells for.

"Sellers are finally recognising that they need to undercut their rivals from the outset, rather than testing the market and dropping prices later," commented Miles Shipside of Rightmove.

But he added: "While this £4,000 reduction is on top of a £3,000 drop last month, sellers' pricing needs to be at the level where deals are being done."

Published 21st July, 2008

© 2008 Estates IT Limited