House sellers’ asking prices fell national month-on-month - except among those in the North.
The region was the only one to see asking prices increase month-on-month, according to figures released by the website Rightmove.
The national picture showed house sellers’ asking prices fell steeply, by 2.9 per cent, to £262,401 in August - the largest monthly drop that Rightmove has on its records, which go back more than a decade.
Asking prices in London saw the largest monthly drop across England and Wales, with average prices in the capital standing at £552,783, which is 5.9 per cent lower than in July. The North was the only region to an increase in prices, with a 0.5 per cent uplift pushing them to £149,354 typically. Rightmove said the figures reflect sellers adopting a “summer sales attitude to pricing”, in the knowledge that potential buyers tend to be thinner on the ground during the holiday season, before activity lifts again in the autumn.
Alongside these seasonal factors, Rightmove also said that recent speculation about the prospect of interest rates rising, more properties coming up for sale and toughened mortgage lending rules are likely to be having an impact on the market. At the end of April, new rules came into force under the Mortgage Market Review (MMR) which mean lenders have to ask mortgage applicants more detailed questions to check whether they can afford their home loan.