Average asking prices fall by 2.2% – Rightmove

"In spite of pent up demand, the market and pricing is boxed in by restrictive lending criteria put in place to ration mortgages given the lack of funds available to lenders."

Those marketing in the summer holiday season tend to be more aggressive with their pricing as they usually have a strong reason to market when most people are contemplating their annual break from the stresses of the year.

This month’s fall virtually mirrors the 2.3% drop of August last year. It fits more with a traditional seasonal pattern, rather than an early signal of a return to further falls as predicted by the proponents of a double dip scenario.

Nonetheless it is still the largest fall seen this year, which had previously recorded rises in five out of seven months.

Have your say on this story using the comment section below