The latest Rightmove House Price Index has found that asking prices for homes fell by 1% in the last month, which is the biggest fall since November 2004. The drop in asking prices pushed annual house price inflation down from 2.4% last month to 0.2% in July, which is the lowest level in 10 years.
Rightmove believe that sellers now realise that they have to compromise to some extent in order to sell their properties. As part of the index, Rightmove measured 124,848 asking prices, which is more than half of the UK market, and found a drop of £1,993 (1%) across England and Wales. The average price of a property now stands at £196,649.
Our view
With the Bank of England base interest rate reduction last week from 4.75% to 4.5% expect some recovery.