House prices in UK fall 4.8 per cent

House prices fell 4.8 per cent year-on-year this month, a survey by property Web site Rightmove showed yesterday, the fastest fall since the series began six years ago.

Rightmove said property prices fell by 2.3 per cent, or £5,403 this month, bringing the average asking price down to £229,816.

For last month, Rightmove reported a two per cent year-on-year drop in house prices.

Figures are not seasonally adjusted, but add to overwhelming evidence of a severe downturn in the British housing market as buyers find it harder to get a mortgage as banks tighten lending conditions and the economy cools.

London saw the sharpest fall among regions last month, with average prices sliding by 5.3 per cent after a 0.3 per cent rise the previous month. Prices in the capital were 3.8 per cent down on a year ago.

"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," said Miles Shipside, commercial director at Rightmove.

The survey also showed the seventh consecutive monthly rise of unsold houses on the books of estate agents to a record 78 properties on average this month, up from 77 in July.