UK House Prices Fall by 1.7%

The latest research carried out by online property portal, Rightmove, suggests that property asking prices in Great Britain have declined by 1.7% in August, marking the second consecutive month of decreases. At the moment, an average price of a UK property stands at £232,241, which is £4,091 less than in July 2010.

According to property experts, the decrease is due to oversupply of marketed properties, which is coupled by subdued activity in the real estate sector. Rightmove claims that the number of houses for sale in the UK rose by 41.3% from the year earlier and reached 29,220 a week.

Still, the recent falls in UK house prices might be a traditional consequence of the holiday season rather than a relapse in the property market. July and August have traditionally seen decreases in property values and buyers’ demand. Rightmove claims that the user activity on its website is still high, which means that Brits are interested in the housing market.

In the opinion of Rightmove’s director, Mr. Shipside, property values in the UK are unlikely to rise significantly in 2010 unless mortgages become available to the masses.