House prices fall 2.1% in August
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House prices have fallen 2.1% in August, compared with July, taking them to £231,543, shows the latest house price index from Rightmove.
Year-on-year prices are now down for the first time since September 2009, falling -0.3%.
But in the four years since the onset of the financial crisis asking prices have fallen by only 4.1%.
Miles Shipside, director of Rightmove, says sellers’ initial asking price aspirations have remained remarkably stable, and in spite of the continuing global economic unrest, the UK housing market has several unique factors that should help to insulate it from downside risks.
He says: “This month, new sellers’ average asking prices have dropped by 2.1%, following the post-credit-crunch pattern of falls in August that has remained consistent since 2008.
“However, although this is the fourth year of economic uncertainty, the average price at which new sellers market their properties remains in the same ball-park when compared to both last year and the onset of the credit crunch in August 2007.
“These figures show that the country has avoided the downward spiral of widespread price slashing that has been a common feature of the property downturn in many other countries with similarly highly geared housing markets.
“While local conditions vary, overall the upside factors that are unique to the UK mainland look set to continue the awkward but stable status quo.”
Shipside says the market is in a ‘limbo-land’, where a restricted number of motivated sellers are trying to match themselves up with the similarly restricted number of financially capable buyers.
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