July average house prices fall £4345 as desperate sellers cut prices to search of deals

UK house prices have fallen at a record rate this month as sellers slash expectations, according to property website Rightmove.

The average asking price was down £4345 in July from June, a 1.8 per cent drop and the biggest July fall since the survey began. Prices were 2% lower than the same time last year.

Rightmove commercial director Miles Shipside said: “Sellers are finally recognising that they need to undercut their rivals from the outset, rather than testing the market and dropping prices later.

“While this £4000 reduction is on top of a £3000 drop last month, sellers’ pricing needs to be at the level where deals are being done. It could be a lot better outcome to price aggressively and sell now, rather than accept a bigger reduction later as prices continue to fall.”

Rightmove said the level of unsold stock had risen for the sixth month in a row, even though the number of properties coming onto the market was at “historically low levels”.