Over a third of homes on the market have had a price reduction, the highest figure recorded since 2011, as house prices continue to be affected by higher interest rates.
Some 36.3 per cent of properties which are currently up for sale have had their price slashed at least once, with the national average reduction equating to £22,700, according to the latest tracking data from Rightmove.
Sellers have had to lower the value of their homes to entice buyers amid a volatile period for the UK housing market.
The real estate portal said that the number of sales being agreed in August across all property types dropped 18 per cent when compared to the same period in 2019.
However, the company said there were some signs that the market was picking back up, after a horrendous summer of high mortgage rates which battered the health of the sector.
The average five-year fixed mortgage is now at 5.67 per cent, the seventh consecutive week of five-year fixed rates dropping, after peaking at 6.11 per cent in July, offering a glimmer of hope for prospective buyers.
In the first week of September the number of new properties coming to market also jumped by 12 per cent when compared with the average weekly number throughout August.
Across Britain, the average new seller asking prices increased marginally by 0.4 per cent, to £366,281, but Rightmove said this is lower than is usual for this time of year.
But the typical asking price is 0.4 per cent lower than a year ago, marking the biggest drop in house prices since March 2019.
Rightmove said of the latest house prices data: “There is still not a glut of homes for sale, with the number of available properties down by seven per cent on 2019, but things are improving for buyers looking for more choice now that most holidays have ended and kids are back at school.”
Tom Bill, head of UK residential research at Knight Frank added: “A strong jobs market, lender flexibility and the prevalence of fixed-rate deals in recent years will all curb price declines but stability is needed to improve sentiment, which is the all-important lubricant in the housing market.
“Even once rates peak, the adjustment to higher borrowing costs and the looming general election mean that we don’t expect a housing market firing on all cylinders. We don’t anticipate a cliff-edge moment for prices but a single-digit decline this year is likely to be repeated next year.”