House sellers 'dropping asking price'

Posted: 18 Jul 2011 11:52:42 GMT

House prices have dipped in July as people seek buyers, it has been found.

UK house prices have dipped for the first time this year, with July seeing new sellers lowering their asking prices by 1.6 per cent.

According to Rightmove's Housing Price Index, people dropped these costs by an average of £3,797.

Around 70 per cent of the properties put up for sale this year are still on the market, suggesting equity-poor sellers may be unable to reduce their prices further.

Compared with July 2010, the report showed that the number of new sellers has dipped by 12 per cent, with many individuals finding it difficult to stump up the required deposit to move home.

However, the study also revealed retail price inflation has outpaced property prices across the last four years by 14 per cent, which could improve buyer affordability.

The news comes after the Council of Mortgage Lenders recently reported that a report from the Department for Communities and Local Government showed owner-occupation is still the ideal accommodation set-up for the majority of Brits.
  

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