Property Market In Disarray As Average UK Home Loses £1,000 Every Month

The value of the average home is plummeting by £1,000 a month, according to the latest Asking Price Index Report from Home.co.uk for June 2008.

Since March 2008 asking prices have fallen by 1.1% across England and Wales, with cuts in all regions.

Scotland also saw a fall of 0.5% since March 2008 and north of the border prices have now fallen for the last four months in a row.

The worst hit region for sellers was the East Midlands, with prices dropping by 2.2% during Q2. London sellers also suffered with prices dropping by 1.7% in the capital during the same period.

Doug Shephard from Home.co.uk said: "Buyers are playing a game of wait and see and holding off making that decision to buy as prices continue to fall. This coupled with punitive mortgage rates is limiting buyers' spending ability and forcing sellers to reduce prices."

The figures show that from May to June the South East of England and London were the only two regions in England not to show a decrease in prices.

But rather than indicating a resurgent market, the price hike of only 0.1% in the South East is more likely to signal a temporary reprieve with further price drops on the horizon.

These latest figures from Home.co.uk echo fears about the property market raised by the Royal Chartered Institution of Surveyors (RICS), which announced that completed transactions in the three months to May were the lowest since records began in January 1978.

Over the last year prices have risen by 1.1%, but this is effectively a price drop when taking into account inflation. The price rise is still 1.9% behind the CPI and 3.1% below the RPI.

The mix-adjusted average price of homes in England and Wales, advertised on the open market, now stands at £256,112.

Notes for Editors

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