House asking prices continue to fall

15 August 2011

House sellers dropped their asking prices for the second month in a row in August, according to Rightmove.

The price tag sellers are placing on their houses fell by 2.1% from July to August to an average of £231,543. 

Asking prices on houses are now 0.3% lower than a year ago - the first annual drop since September 2009.

Rightmove says the main reason for the fall is subdued demand and a sluggish market.

In limbo

Miles Shipside, director of Rightmove, says the housing market in the UK is "in limbo" and "limited to sellers willing to price aggressively below the competition and can afford to do deals."

Geographically London saw the biggest fall of 3.4% to £418,008 and the South East came in second with a drop of 2.6%.

The only areas to see a slight increase were Wales and Yorkshire & Humberside.

Shipside says: "It seems that this stalemate can continue indefinitely until it is broken either by an improvement in upside factors, such as a relaxation of mortgage finance, or by a further deterioration in employment and a corresponding increase in forced sales at bargain-basement prices."

Nicholas Leeming, spokesperson at, says: "Vendors continue to have to lower prices due to weak buyer demand. Sluggish economic growth has hit buyer confidence and tight-fisted lenders are currently making it impossible for swathes of would-be buyers to benefit from the price reductions."


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