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UK mortgage holders face house price "reality"

Date: Tue, 19 Jul 2005

UK mortgage holders face the reality that the housing market is no longer buoyant.

Estate agent Rightmove has revealed that sellers are finally lowering their asking prices, with average prices falling by one per cent over the past month.

However, discovering the reality of the UK housing situation could actually lead to a recovery of the industry because it will resolve the current stagnation in the market.

"Sellers are now realising they have to compromise some degree of their gains in order to sell their properties," said Miles Shipside, commercial director of Rightmove.

"This common sense is a vital step along the road to an orderly recovery of the property market, particularly if combined with an interest rate cut."

The lowering in asking prices means that the average house in the UK is priced at £196,649, £451 more than the same period in 2004.


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