The asking prices for houses has experienced a drop which will further support those that are expecting a natural correction of the housing market as buyers walk away from inflated prices.  According to online property lister, Rightmove, the asking price for homes from July to August fell by 2.9%.  This is the largest decline recorded since Rightmove began collecting data.

London has over the course of the recession contributed to the average asking price and kept it aloft as levels there have remained higher than in other areas of the UK.  However, London from July to August experienced the largest fall by 5.9%.  This brought the asking price for property in London to £552,783 on the Rightmove website.

Miles Shipside, director of Righmove, said, “Both buyers and sellers are becoming increasingly aware about personal finances.  This limits what buyers are willing or able to pay, and helps moderate sellers' price expectations.”

Buyers are still finding financing for a new property to be cheap with low interest rates still attached to first time buyer mortgages as well as for those looking to move home.  In addition, remortgages are also at low interest rate offerings.

Despite the ability to find low interest rate deals, buyers are apt to wait out the market and look for the right deal.  The recession has taught the consumer public to be practical and to forego instant gratification with buying – even when buying a dream home.  Sellers have been keen to push the asking price but now buyers are liable to be wary.  The fair deal of an asking price for property is likely to be the deal that gets a property quickly off the market.