House prices tumble for second month in a row

Asking prices for homes in Britain slipped 1.7 per cent during the month to August 7 as more sellers put properties on sale, property website Rightmove said.

Apart from over-supply, seasonal dip also dragged average asking price down by £4,091 to £232,241. It was the second month in a row to report fall in asking prices. In July asking prices had slipped 0.6 per cent.

Until July, Rightmove had recorded only increase in asking prices.

Rightmove said that the number of sellers outstripped the number of buyers, and available stock per agent climbed year-on-year 41.3 per cent to its highest August level in the past three years.

The revealed data added to fears of a possible relapse in the housing market. Recently, the Royal Institution of Chartered Surveyors also said that its members recorded fall in prices previous month for the first time in a year.

Rightmove said that shortage of mortgage is hampering buyers and causing pent-up demand.

Speaking on the topic, Rightmove director Miles Shipside said, "There needs to be a spur to cause prices to rise. However, as mortgages won't become available to the masses and last year's stock shortages show no sign of reappearing, we can't see it happening during the remainder of 2010."

Asking prices slipped 4.4 per cent and 4.1 per cent in the West Midlands and London respectively. On the other hand, asking prices climbed 2.6 per cent and 1.5 per cent in the North and East Midlands respectively.