UK house prices down 1.5% y/y in Septmber

Asking prices for homes in England and Wales are on average 1.5 percent lower this month than a year ago, with the available stock at its lowest for 18 months, property website Rightmove said on Monday. The average asking price rose 0.6 percent in September to 223,996 pounds ($366,100), after a 2.2 percent fall in August, as the lack of supply put upward pressure on the market.

Rightmove said 10 properties were coming off the market for every eight coming on, with would-be sellers deterred from trading up by dwindling property choice and high deposit requirements.

"Confidence is up, stock is down, and the number of people searching is high," said Rightmove director Miles Shipside. "There are lots of positives but too few buyers can put down the 40 percent deposits that are needed in order to secure the best mortgage deals."

London was one of three regions which saw a month-on-month rise in house prices in August, although they remain 0.9 percent down on the year at 390,768 pounds.

Rightmove said evidence suggested activity in the property market was over dependent on those with substantial equity, and warned that lenders cherry-picking these buyers risked prolonging a thin market.

"Many aspiring sellers could face years trapped in their homes until values rise enough for them to join the equity-rich club," Shipside added.