The rise in property price is probably 'a correction', study finds

The online company Rightmove said prices rose while the rest of the UK saw a decline of 0.2%.

But the firm said the rise is probably a correction after a previous slump of more than 6% in Wales.

The study found almost 120,000 sellers in England and Wales cut their asking price in the four weeks to 6 August.

The next biggest regional increase was in the north west of England, where prices rose by 0.7%. In London and the south east they fell by 1.6% and 2.2% respectively.

The company said the cut in asking price by many people was a reflection that it remains very much a buyers' market.

The average property in England and Wales now costs �196,282, just 2.1% more than 12 months ago. Average prices have fallen by more than �2,000 during the past two months.

Miles Shipside, commercial director of Rightmove, said: "More estate agents are declining to market properties if the seller wants to try for too high a price.

"It's a tough message to sellers, but if an estate agent has already got similar or cheaper properties that they are not selling, they are thinking 'Why have more?'.

"There is too much unsold property still available to expect anything other than a continuation of static asking prices this year."