Rightmove: house prices to fall

The latest index from the property search engine said the average asking price fell by 1.6% from £230,184 in October to £226,440 in November.

Miles Shipside, commercial director of Rightmove, said it expected three months of further falls in asking prices because November’s fall proved the market was not strong enough to buck seasonal trends.

He added: “Available property remained thin, with 89,140 new homes coming on to the market this month, 30% below 2007 levels. The market is still suffering from poor liquidity as mortgage availability progressed at a snail’s pace over the year.”

Rightmove added that prices across the majority of the country are now higher than they were this time last year. Southern regions showed the largest increases, with asking prices in the South East rising by 3.8% over the year.

David Sheppard, managing director of Perception Finance, said he was not surprised at the result as the demand for property traditionally declined in winter.

He said: “People have other things to do besides looking for property at Christmas. This year is no different to other years despite the economic difficulties.”