Average UK house prices fall in August, Rightmove reveals

Asking prices for homes in England and Wales fell in August compared to a month ago due to Brexit worries and a quieter summer holiday period, Rightmove said on Monday.

Prices of homes for sale dropped 1.2% on the month in August, the biggest fall since November, following a 0.9% decline in July. The average asking price for homes in England and Wales was £304,222 in August.

On the year, prices rose 4.1% in August but it marked a slowdown from July’s 4.5% year-on-year growth, according to Rightmove’s survey which covered properties put on sale between 10 July and 6 August.

London experienced the biggest monthly decline with asking prices decreasing 2.6% to £619,409, although it was 2.1% higher than a year ago.

Miles Shipside, Rightmove director and housing market analyst, said: "Many prospective buyers take a summer break from home-hunting, and those who come to market at this quieter time of year tend to price more aggressively.

"This summer is also affected by both Brexit uncertainty and the aftermath of the buy-to-let rush in March to beat the stamp duty deadline."

Economists have warned the outcome of Britain’s 23 June EU referendum would impact the housing market as the nation faces a possible recession.

In response to Brexit, the Bank of England has cut interest rates 25 basis points to 0.25% to try to encourage continued investment.

Rightmove expects 2016 will be “a year of two haves” for the housing market. The first half of the year saw a rush of buy-to-let investors trying to beat the higher stamp duty charges introduced on 1 April while the second half is expected to be weighed down by Brexit concerns.