House prices have fallen for the second month according to the data supplied by the online property site Rightmove. According to their figures the average asking price has fallen 1.7 per cent in the past month. This means that the average house price on Rightmove has gone from 236,000 to 232,000. Rightmove’s site lists 200,000 properties.

The number of properties available to the market has increased for the sixth straight month. The new supply of homes is growing faster than lending is being extended. Another sign that supply of properties is increasing is that August, which is traditionally a slow listing month, has already been the highest month for new properties being listed in the last three years.

Rightmove’s commercial director, Miles Shipside said: "For the market to gain some more headroom, we need to see mortgage approvals running at over 50 per cent of new listings. But for the last few months, this figure has struggled to consistently hit 40 per cent."

Rightmove’s report corresponds with the analysis from Nationwide Building Society, Halifax Bank, the Royal Institute of Chartered Surveyors, and the Land Registry that the housing market has gone into reverse.

Mr. Shipside pointed that the optimistic outlook to this data is that as house prices fall it makes them more affordable to first time home owners. The lower price makes it easier to obtain an affordable deposit, and there are still low interest rates that are helpful. He said: "The next 12 to 18 months could provide a window for those who can just meet minimum deposit and creditworthiness criteria, as affordably low interest rates and lower property prices could marry up. A period of higher inflation that outstrips flat or falling property prices makes buying even cheaper in real terms, as long as your salary is going up in line with inflation."

Mr Shipside added: "These are the conditions that over a few years could herald a sustainable housing market recovery, based on higher buyer volumes as opposed to stock shortages."