Home sellers dropping asking prices

Asking prices are falling this month as sellers drop prices to more realistic levels in the traditional housing market summer lull, according to the latest index from property website Rightmove.

Its latest figures showed the average asking price fell in August by 2.2% or £5,102 to £222,762.

This was the biggest monthly fall recorded this year but it echoed the 2.3% decline in August 2008.

Rightmove attributes the drop to the aggressive nature of sellers in the summer months who lower prices to sell to a smaller pool of buyers.

Miles Shipside, commercial director at Rightmove, says the figures show prices will bump along the bottom before returning to consistent growth.

He says: "After several months of activity and prices revving upwards from last winter's low point, both will start to hit the limiter without more mortgage finance.

"In spite of pent-up demand, the market and pricing is boxed in by restrictive lending criteria put in place to ration mortgages given the lack of funds available to lenders."

Rightmove measured 82,700 asking prices of properties put on sale by estate agents between 12 July and 8 August.