UK house prices fall in August as demand drops for bigger homes

Property site Rightmove says market for smaller properties experiencing record highs despite overall decline

UK house prices fell in August amid a drop in demand for bigger homes after the government scaled back its stamp duty tax break for buyers in England and Northern Ireland this summer, according to Rightmove.

The property website said the national average asking price of a home had fallen by 0.3%, or about £1,000, over the past month, and now stood at £337,371. However, it said buyer demand remained strong for smaller properties in particular, and that it was predicting an “autumn bounce” in prices.

In a further sign of the housing market cooling after the government changed its stamp duty rules earlier this summer, bringing to an end a boom in property values as buyers scrambled to take advantage of the tax break, the figures come after the Nationwide building society said house prices fell by 0.5% in July. Rival lender Halifax said prices rose by 0.4% in July, but predicted a drop in house prices over the coming months.