Property Prices Fall For A Third Month In A Row

According to the latest edition of the Rightmove House Price Index, asking prices for property were down by £1,402 from August to September and the drop wasn’t an isolated case. It’s the third consecutive month of property prices falling, Rightmove said, as the sector saw a total decrease of £11,377 in the quarter.

However, over the span of 5 years – from 2007 to 2012 – property prices have remained virtually unchanged. The average asking price in September 2007 was £235,176, Rightmove said, which is just £318 over the £234,858 level seen today. This is in serious contrast with the picture seen over the previous five years period, when property prices increased by 55%.

The situation is different for the different regions of the country, with London seeing property prices continuing to rise and with the South also contributing for a hefty 18.7 percent increase. But those numbers have been offset in the north, where asking prices have been falling. This creates serious problems for northern homeowners, who don’t have access to the same equity gains as their southern counterparts, Rightmove said.
This year, property prices have also suffered from the recent Summer Olympics, which “has been more compelling for many than viewing property”, Rightmove added. The decreased demand for property and the increased competition amongst sellers are the main reasons for the 4.6 percent drop over the third quarter of the year.