Property website Rightmove says this is the second consecutive month in which house prices have fallen in England and Wales.
The average umbrella company contractor putting their house on the market would have reduced the asking price by 2.1% to £231,543 this month, compared to last. Asking prices are now lower than they were a year ago, albeit just by 0.3%.
Miles Shipside, director at Rightmove, said the property market is currently in limbo. In many parts of the UK the only activity is from sellers who can afford to price aggressively and those who are able to do a deal.
For the first seven months of the year, London has been the strongest of the regional housing market, but even the Capital has witnessed a 3.4% month-on-month decrease in house prices in August. The average asking price in London is now £418,008 – down from £432,641. August also saw 9% fewer properties coming to market compared to last month.
The only areas to escape falling house prices this month are Wales and Yorkshire & Humberside, but they have only seen modest increases.
A new report from Zoopla.co.uk shows that 38.6% of homes currently for sale have seen their asking price cut on at least one occasion. Sellers have been forced to reduce their asking price by an average £18,500 or 7.1%. The property website’s research also showed that 27% of properties on Millionaires’ Row have had their asking price reduced – up from 22% this time last year.
Sellers are quickly discovering that their price ambitions do not meet current reality. One Beaconsfield estate agent pointed out that people who priced their property sensibly are still seeing strong interest, but those with an unrealistic approach will receive little interest.
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