New figures out today indicate the average price tag on a home coming on the market has dipped by nearly £5,000 month-on-month, marking the first fall this year so far. 

Across Britain, the average asking price fell by 1.3 per cent or £4,795 in cash terms month-to month in August to reach £365,173, Rightmove said.

However, the fall may be more due to a usual seasonal lull than wider economic factors such as interest rate rises, the website said.

Prices usually fall in August, and the drop is in line with the average drop seen that month over the past ten years, Rightmove said.

This month also marks 20 years since the first Rightmove house price index was first published.

The average asking price for a home has more than doubled since then, standing at £155,994 when the index started.

Commenting on the report Jonathan Rolande, from the National Association of Property Buyers, said:  The whole picture is at this stage, more of a slowdown in growth than an actual drop in prices. Rightmove commented that the reduction is in line with traditional summer price trends from the previous decade.

However, thanks to the unprecedented Covid bounce and the cost of living crisis, past performance may not be a reliable indicator of just where the property market is going.

Unless drastic action is taken by the government, the effect on the property market will be near impossible to accurately predict.”

Tim Bannister, Rightmove’s director of property science, said: “A drop in asking prices is to be expected this month, as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays.”

“Sellers who want or need to move quickly at this time of year tend to price competitively in order to find a suitable buyer fast, with some hoping to complete their move in time to enjoy Christmas in a new home.”