Biggest month-onmonth drop of year hits house prices

ASKING prices for homes in the UK fell by 0.9pc in August in their biggest month-on-month drop of the year, according to Rightmove figures.

On an annual basis, the gain in house prices picked up pace this month, accelerating slightly to 3.1pc.

The figures showed that the national housing market, which has softened in the past year due to tax changes, Brexit, political uncertainty and a consumer spending squeeze, is holding up better than the market in London.

Demand for homes in the capital continues to ease and the slowdown shows few signs of letting up. Asking prices in London rose 1.6pc in August over the past year, Rightmove said.

While that is an increase from the July pace, it is well below a peak of 20pc in 2014. Within London, asking prices have been most resilient in the borough of Hackney. They rose 8.9pc over the past year to an average of £686,663.