Asking prices in freefall, says Rightmove

Rightmove has revealed that UK asking prices are falling faster this August than ever before.

The online estate agent says new vendors put their properties on the market for 2.3% less than the previous month.

Rightmove says the drop is the largest fall measured by its August house price index.

The news comes on the back of monthly drops of 1.2% and 1.8% in June and July respectively.

The firm says the biggest regional reversal was in London, where summer sellers have reduced asking prices by 5.3% compared to the increase of 0.3% of the previous month.

Miles Shipside, commercial director of Rightmove, says: “Sellers coming to the market in the middle of the summer holiday season tend to be more motivated.

“London, in particular, appears to be having its own special summer sale with over £21,000 off in a month.”

In spite of London’s large monthly fall prices in the capital are just 3.8% lower than last year, compared with 4.8% lower nationally.

Rightmove says the readjustment of the last three months comes as discretionary sellers choose not to enter the market, leaving a higher proportion of forced sellers who must price more aggressively.

The index also reveals the number of new listings measured this month stands at 106,000 – nearly 25% short of what Rightmove expects to see at this time of year.