UK property prices continue to fall

The latest property index for the UK has backed up predictions that house prices will fall in the second half of 2010.

Rightmove's data has shown there to have been a decline in values over the last three months, with asking prices falling again in September and eating in to the gains seen during the first half of the year.

Following drops of 1.7 per cent in August and 0.6 per cent in July, UK property prices fell 1.1 per cent this month.

The real estate website's findings are in line with other surveys showing house prices have stumbled in recent months - a phenomenon many commentators are attributing to uncertainty surrounding government spending cuts and an increasing supply.

Miles Shipside, commercial director of Rightmove, explained: "The surge of extra stock has left the market with a real supply hangover. Sellers' attempts to hold onto price gains made earlier in the year have suffered from a relentless stream of fresh property."

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