UK house prices drop 2.3% in August - Rightmove
UK house prices dropped 2.3% in August from July, as new sellers launched a ‘late summer sale’ to try and find a buyer more quickly, according to figures released earlier by Rightmove.
The decline was steeper than the 2.1% drop seen in August last year, with the more subdued London market and the commuter-belt region of the South East weighing on the national average. On an annual basis, meanwhile, prices were up 1.1%, but this was down from a 1.4% increase in July.
In the capital, the price of property coming to market was down 3.1% on the month in August, resulting in an annual rate of decrease of 1.2%. In the South East, prices were down 2.3% on the month and up 0.6% on the year. Excluding those two regions, the rest of the country saw a monthly decline of 1.5%.
Miles Shipside, Rightmove director and housing market analyst, said: "Sellers who come to market in the peak holiday month often have a pressing need to sell and price down accordingly, and are offering ‘summer sale’ prices to entice holiday-distracted buyers.
"The market started its most recent cyclical price upturn in 2010, and since then the average price of property coming to market has gone up by 32%, stretching buyer affordability. More substantial discounts are therefore required to tempt warier buyers, with higher house prices also tightening the purse strings of lenders. With lacklustre average wage growth, more buyers are bumping up against the tighter lending criteria brought in four years ago following the Mortgage Market Review, which were intended to prevent another boom-and-bust cycle."