House prices fell by 0.6 per cent in the four weeks to 10 July, according new research by property web site Rightmove.
A flood of new properties for sale in the housing market has driven sellers to lower their asking prices for the first time this year in July, figures have shown.
Property website Rightmove said an average of 30,000 new homes were appearing for sale each week, which was 45 per cent more than July 2009’s total.
During the four weeks to 10 July, asking prices fell by 0.6 per cent to an average £236,332, and the group said estate agents had the highest number of properties on their books since August 2008.
After rising for five consecutive months, agencies now have an average of 77 properties on offer, which means there are five new homes available for every two potential buyers with approved mortgages.
The average property price peaked at £237,767 in June, and rose by £15,506, or 7 per cent, since the start of the year. Rightmove said it expects house prices to lose these gains by the end of 2010.
Commercial director Miles Shipside said: “More aggressive pricing is likely to see the average price gains of 7 per cent for the first half of the year wiped out by year-end, in line with Rightmove’s original forecast for the year of no net change in prices.”