House prices in the United Kingdom is expected to face further squeeze during the rest of the year, as supply continues to outstrip demand, a survey by Hometrack showed Monday.
An index measuring the average asking price of a home fell 0.1 percent month-on-month in August. This was in line with expectations and matched the rate of decline in the previous month.
Year-on-year, prices fell 0.5 percent in August, at the same pace as in the previous month. House prices in London remained stagnant during the month.
Richard Donnell, director of research at Hometrack, said the market remains in a fragile state. As the supply demand balance weakens, Hometrack expects to see slow downward pressure on prices over the remainder of 2012.
Meanwhile, a survey by Rightmove revealed that house prices fell 2.4 percent month-on-month in August, the fastest pace ever seen for the month as properties coming to the market continued to outnumber demand.
Another survey by the Royal Institution of Chartered Surveyors (RICS) showed that house prices declined to the lowest in a year in July. Sales plunged to a near four-year low, according to RICS.
by RTT Staff Writer
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