Rightmove's house price index indicated that the average UK asking price in September was £235,176, a decrease of 2.6% from August and an increase of 9.6% on 12 months ago.
This decline in prices is due to fewer larger homes entering the property market as Home Information Packs (Hips) are brought in. In addition, there are fewer new sellers, down by 48%.
London's average asking price was £384,439, a decrease of 2.5% from August and an increase of 17% on September 2006.
Property prices appear to have passed their peak for 2007 in London and thereabouts.
The record breaking price levels up to now are driven by the economy's health in the south with buyers able to pay more, thus resulting in demand outstripping limited supply.
Increasing mortgage costs mean sellers need to be more flexible with prices.
There is likely to be a sharp slowdown in house price growth, even though a housing market crash would necessitate a rise in sellers on the market, normally triggered by a weak labour market.
Presently, the biggest threat to the housing market is from the impact of the current credit market turmoil.
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House Prices Decline by 2.6 per cent
Wed, 26 Sep 2007
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