The average price of houses fell slightly between August and September, according to the latest report from Rightmove.  The Olympics took the place of searching for a new house for most people in the market for a new residence.  The average price dropped a marginal 0.6%, to 234,858 pounds.  The previous two months saw larger drops in price – 1.7% and 2.4%, respectively.  Prices stand at 0.7% higher than twelve months ago and at the same point they were in 2007.

Housing analyst with Rightmove, Miles Shipside, commented on the current activity level in housing and the past few months, saying: “Summer sellers have had some very stiff competition, not only from competing sellers chopping their prices, but also from the Olympics extravaganza which has been more compelling for many than viewing property.”

Shipside also remarked on the global economic condition and how it has affected the ability for potential property owners to jump on the housing ladder.  He believes the last few years have forever changed the accessibility for new owners to obtain property and made it more difficult to get past the first major road block.  The current interest rate level combined with the risk level for lenders has made it difficult to get on the ladder, but much easier to stay and move up.  Deposits on houses have jumped 100% during the last five years, increasing from 10 to 20%.

Shipside continued with his remarks, saying: "The state of the housing market is little different now to this time last year and prices have stagnated as neither buyers nor sellers have been forced to change their behaviours in sufficient quantities to stimulate greater activity."