August house prices in minor fall
In August the price of property fell by 0.8% (£2,258) compared to the typical post-credit crunch fall of 1.5%.
The number of sellers putting homes on the market fell by 8% compared to the same period in 2014.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “The summer is seeing fewer new sellers, with August offering potential buyers the smallest price reduction seen in this month since 2007.
“It’s no surprise that house price inflation has increased on the same period last year as the imbalance between supply and demand has made for a competitive market for people looking to buy.
“Rising wages and low inflation are driving more people to the market, and unless housing construction is ramped up significantly, house prices will climb beyond people’s reach in future months.”
Rightmove established three main reasons sellers are failing to list their homes on the market: The cost of moving, they cannot find anywhere they want to buy and they cannot find a property they can afford.
Duncombe added: “It’s vital that the government acts to boost housebuilding to make homes more affordable and to ensure that there are homes available for people to buy.
“It’s also paramount that these houses are built to suit the needs of people across the market, from first to last time buyers.
“The government’s current policies that aid first-time buyers in getting a foot on the ladder are welcome, but more support is needed for other people whose options are limited due to high asking prices and the lack of supply.”