UK house prices drop in August

UK house prices fell during August, according to figures from Hometrack.

The property intelligence group's data highlights that the average house price dropped 0.3 per cent across the month to £158,300, following a 0.1 per cent decline in July.

August's drop has been attributed to a fall in the number of people looking for a new home.

Richard Donnell, director of research at Hometrack, said: "The unmistakable fact is that the availability of homes for sale has improved markedly and this has reduced the support for house prices provided by the scarcity of housing for sale over 2009 and early 2010. This comes at a time when there is growing weakness on the demand side - a weakness which represents more than just a seasonal blip."

However, recent research conducted by economists at Oxford Economics suggested that a shortage of new homes being built over the next few years will lead to house price growth, meaning people should act quickly if they want to invest in UK property.

The researchers stated that average residential prices will increase by 7.5 per cent this year.
 

Like this? Then share with your friends and colleagues!