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Asking prices for UK homes fall for first time in 2014 - Rightmove

Published 21/07/2014, 02:11
Asking prices for UK homes fall for first time in 2014 - Rightmove

LONDON (Reuters) - Asking prices for houses in Britain have fallen for the first time this year although they are likely to pick up more speed before the end of 2014, property website Rightmove said on Monday.

Prices of property coming onto the market fell by 0.8 percent in July, leading to a slowing in the annual rate of price growth to 6.5 percent from 7.7 percent in June, according to Rightmove's House Price Index.

There have been other signs of a slowing in Britain's fast-recovering housing market recently.

"A price fall in July is not unexpected as prospective buyers turn their attention to the summer holidays, not to mention the added distraction of an engaging World Cup," said Rightmove director Miles Shipside.

Asking prices have fallen in July in six of the last 10 years, reflecting a normal seasonal drop.

But stricter rules on mortgage lending and suggestions from the Bank of England that interest rate rises could come sooner than previously expected could also have played in a role in the decrease, Rightmove said.

© Reuters. Sold new build homes are seen on a development in south London

Despite the fall in July, Rightmove upgraded its forecast for growth in asking prices to 8 percent in 2014, from a previous prediction of a range of 6-8 percent. More houses were coming onto the market but demand was still stronger than supply in the most popular areas, it said.

(Reporting by Tess Little; Editing by William Schomberg and Robin Pomeroy)

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