According to Rightmove, UK home sellers reduced their asking prices by an average of -1.6% in November 2009 for the first time in three months, as demand for property decreased prior to the Christmas period.

Prices have now fallen -6.6% below the peak in May 2008 despite having risen by +2.8% in October 2009. The highest decrease in prices was in the Yorkshire and Humberside area, where they dropped -4.4% from October, and prices in the North West also fell by -3.8%.

Miles Shipside, Rightmove’s commercial director, said: “In all but the most buoyant of markets home moving comes second to Christmas festivities,

“While the market has recovered from some dreadful lows, this month’s price fall proves that it does not yet have the strength to buck seasonal trends.”

Prices in London also decreased in November by -3.1%, with the highest drop in Barking and Dagenham (-5.3%). Kensington and Chelsea was the only area where prices increased, with a +3.9%gain, putting the average price of a home at £1.97m.

Looking at 2008, the report stated that asking prices in England and Wales went down by -2.9% in November and decreased further in December and January. However, prices have risen in seven of the ten months since then.