Prices of UK homes for sale see biggest fall in nine months in August

THE price of homes for sale in England and Wales fell in August, posting the biggest drop since November, as the summer lull added to uncertainty surrounding Britain’s decision to leave the European Union, property website Rightmove said on Monday.

Asking prices fell by a monthly 1.2 per cent, according to a survey by Rightmove that covers properties put on sale between July 10 and August 6, after shedding 0.9 per cent in July.

The biggest drop was in London and the South East, with asking prices falling by 2.6 per cent and 2.0 per cent respectively.

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

“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.”

Britain voted to leave the European Union in a referendum on June 23 – a decision many economists think could tip the economy into recession and which prompted the Bank of England to cut interest rates for A security fence is seen in the Aylesbury Estate in south London, Britain. — Reuters photo the first time since 2009 earlier this month.

Official data covering the period after the referendum has been scarce, but there are patchy signs that consumer spending held up, while data on the housing market following the vote has been mixed.

The monthly drop in prices reduced the annual increase to 4.1 per cent in August from 4.5 per cent in July, Rightmove said, adding that the survey covered 90 per cent of the market. — Reuters