Property prices drop in August

DESPITE rising in May, June and July, house prices fell in August, according to the figures from Halifax released yesterday.

The data shows a 1.2 per cent fall last month, taking prices down 2.6 per cent compared with the second quarter of 2010.

Nationally, average prices now stand at £161,743, meaning the price-to-earnings ratio has fallen to 4.38.

“Low sales tends to make house prices volatile from month to month,” said economist Martin Ellis, “and looking at the last three months together, prices rose by one per cent.”