Prices down in December

The latest Rightmove House Price Index shows that property prices fell in December.

Month-on-month figures show a drop of 3.2 per cent, with annual inflation falling from 7.9 per cent in November to 4.8 per cent this month.

Surprisingly, London was the worst hit region, with prices plummeting by 6.8 per cent.

The dip in prices is being blamed on a traditional slowing of the market around Christmas and a rush of people selling one and two-bedroom homes ahead of the introduction of Home information packs (Hips) on December 14th.

"New listings are very low at this time of year, so the artificial wave of 'low-end sellers' has really distorted the average prices of new properties coming onto the market," commented Miles Shipside from Rightmove.

"Whilst three months ago we forecast that the final phase of Hips would drop average prices this month, a substantial element of the fall reflects genuinely tough market conditions and many sellers who have listed this month have priced below the market to try and sell," he added.

The West Midlands was the only region in England and Wales to see prices increase in December, recording a growth figure of 1.7 per cent.

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