House prices 'down year-on-year'

Property prices decreased by two per cent year-on-year in July, according to a fresh report released by Rightmove.

And the value of homes also dipped by 1.8 per cent (£4,000) in comparison with the previous month, it stated, something that may be of interest to those looking for a mortgage.

The organisation's commercial director Miles Shipside added that a fall in transaction levels is the most "alarming" impact of the prevailing financial climate.

He suggested that these developments are likely to be a further hindrance as the year progresses.

"As well as job losses in both the residential and commercialpropertyindustry, there is a massive knock-on effect to other areas of the economy as consumers spend less," he commented.

Estate agents are now saying that many homes on their books remain unsold, despite the fact that the market was in much better shape a year ago.

People who own properties in the UK have said that they expect prices to continue falling in the coming year, HarrisInterative has highlighted.