The average asking price of newly-marketed property across England and Wales is down by 2.9 per cent or £7,758 this month compared to last, according to Rightmove.
August is typically a quieter time of year, with an average monthly price fall of 1.6 per cent over the last decade.
But this year’s is the largest August decrease ever recorded in the Rightmove House Price Index, and a lead indicator of a slower market in the second half of 2014.
London recorded a 5.9 per cent drop – the largest drop in three consecutive months of falling prices.
While a drop in August is typical, this year’s is steeper than expected, Rightmove analyst Miles Shipside says.
“Those who have put their property up for sale in the last month are obviously aware that potential buyers are thinner on the ground at this time of year and need to be tempted to act by cheaper prices.”
He adds: “Both buyers and sellers are becoming increasingly aware about personal finances, given that the cost of mortgages are going up and regulators are trying to bring availability down.
“This limits what buyers are willing or able to pay, and helps moderate sellers price expectations.”
London turnaround is also a factor, he says.
“Having forced national average prices up for the last two years, it’s now pushing them down with three falls in a row, and a real biggie this month.
“Holidays always cause a big price reverse in the capital, but there is also a massive year-on-year jump in the number of newly-marketed properties, up 20 per cent compared to August last year, and double the figure seen in any other region. More sellers and fewer buyers mean price falls.”
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