According to Rightmove’s September house price index, residential asking prices in England and Wales have dropped by -1.5% since September 2008 despite the average asking price increasing by +0.6% in September.

Rightmove believe this is a result of a decrease in available stock, with ten properties coming of the market for every eight that becomes available. This is causing upward pressure on the market as the high deposits required for mortgages are putting off potential sellers which mean there is a dwindling property choice.

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

The report also noted that Rightmove branches had recorded their lowest stock levels of property since February 2008, with a -29% decrease in properties coming to the market. This is a further indication of a lack of choice, especially as the report included historic data that showed potential buyers had a choice of approximately two million properties per year historically in comparison to the 1.2 million indicated currently.

Shipside said: “Some would-be sellers may be concerned by the limited choice of suitable property currently available, and will have to decide whether to take a chance on finding something fresh to the market after they have found a buyer.”

The report also included data on regional asking prices with residential prices in the south-east increasing by +1.5% in September, London up by +0.9% and East Anglia recording a staggering +8.4% improvement on August. This is in sharp contrast to the rest of the country where prices have all declined with Yorkshire and Humberside recording a -3.6% decrease for the month and a -6.5% annual fall.

Shipside concluded: “The recession appears to have hit prices harder in the north, and this is compounded by lenders’ more conservative attitude to risk.”