UK home price dip, Rightmove Plc said

UK home sellers lowered asking prices in July for the first time this year as a mortgage squeeze deterred buyers.
Asking prices dropped 1.6% from the previous month, when they had gained 0.6%, the UK's biggest property website Rightmove Plc said. 70% of properties listed in 2011 are still available for sale, which Rightmove described as a "sobering reflection" of the market.

Mr.Miles Shipside, Commercial Director of Rightmove Said, "We expect further falls over the next few months as buyer momentum ebbs away due to a combination of seasonal factors and a continuing lack of both mortgage finance and buyer confidence,"

Seventy percent of regions tracked by Rightmove showed declines in July from June, led by a 3.5% drop in East Anglia. Asking prices in London fell 1.4 % to an average £432,641, though they are still up 2.5% on the year.

Acoording to Bank of England data shows, UK mortgage approvals have stayed below 51,000 in every month since the end of the yaer 2009, compared with 128,512 at the end of the year 2006, before the onset of the global credit squeeze,

 In May, 2011 Banks approved 45,940 home loans

The central bank left its benchmark interest rate at a record low of 0.5% per cent this july month to support the economic recovery through the biggest fiscal squeeze since World War II.

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