UK home prices in August fell by higher than expected rate

London, United Kingdom (4E) – The Rightmove House Price Index dropped for the second straight month in August with one of the biggest declines ever recorded.

Average asking prices fell by 0.6 per cent to 2.4 per cent in August for properties in England and Wales, according to the report by Britain’s biggest property website released on Monday. Compared to the same period a year ago, house prices are higher by 0.7 per cent to £234,858 ($381,000).

In July, the index also fell by 1.7 per cent. In the weeks when the nation hosted the Olympics, the number of sellers that put up their property for sale slightly grew by 0.4 per cent year on year. It also appears that the gap in property prices between the North and South regions is widening, according to the Rightmove report.

Last week, mortgage lender Halifax stated that there is still uncertainty in the housing market as the UK economy is still struggling to emerge from the current recession and buyers having difficulty raising a deposit in the current economic environment. House prices fell by 0.4 per cent in August based on its report.

The Royal Institution of Chartered Surveyors stated that indicators point to a sluggish growth in the property market.

Rightmove also reported that the fall in home prices is seasonal as more sellers usually put up their properties in the market at a relatively lower price during the month. The decline seen in August, however, was surprisingly higher compared to the rate of decline recorded in the last decade that has an average of 1.1 per cent.

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