LONDON, ENGLAND -- (Marketwire) -- 08/16/10 -- The Rightmove House Price Index for August 2010 reports that the average asking price for a property in the UK dropped by -1.7% (GBP 4,091) in the past month to now stand at GBP 232,241.

New seller supply continues to outstrip demand, and as the holiday season continues, Rightmove reports an average asking price fall of 1.7% (GBP 4,091) across the 117,000 new properties added this month. This leaves the average asking price for a property in the UK at GBP 232,241. The fall of 1.7% is the biggest reduction in asking prices measured so far this year, and follows on from the drop of 0.6% in July.

Miles Shipside, director of Rightmove comments: "No one really wants to come to market in August unless they have to. It shows these new sellers have a compelling need to sell, as they have lopped over GBP 4,000 off the average asking price. Those who marketed earlier in the year but have yet to find a buyer may have to do a bit of pruning of their own to beat this new competition. Holidaying buyers can relax on the beach while back at home sellers are reducing the cost of their future property by the price of the family holiday".

August and December are the two months of the year that traditionally see price falls. However, it should be noted that this is the second consecutive monthly fall in a year that, until July, had only seen rises. Following gains of 7.0% from January to June, house prices have now fallen back by 2.3% in the last two months. We predict that the gains made so far this year will have dissipated by year end, although there could be some individual monthly rises in the more active months of September and October. However, market conditions bear some similarities to the second half of 2008. Then prices fell by 7.1% between August and the end of the year as buyers unwilling or unable to proceed left agents with unsold stock levels similar to those currently being recorded by Rightmove.

Shipside adds: "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 re-appearing, we can't see it happening during the remainder of 2010".

For further statistics and to download the Rightmove August 2010 House Price Index please visit - http://www.rightmove.co.uk/news/house-price-index or search for local house prices at http://www.rightmove.co.uk/house-prices.html.