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UK house prices have fallen at a record rate this month as sellers slash expectations, according to property website Rightmove.

The average asking price was down 拢4345 in July from June, a 1.8 per cent drop and the biggest July fall since the survey began. Prices were 2% lower than the same time last year.

Rightmove commercial director Miles Shipside said: 鈥淪ellers are finally recognising that they need to undercut their rivals from the outset, rather than testing the market and dropping prices later.

鈥淲hile this 拢4000 reduction is on top of a 拢3000 drop last month, sellers鈥� pricing needs to be at the level where deals are being done. It could be a lot better outcome to price aggressively and sell now, rather than accept a bigger reduction later as prices continue to fall.鈥�

Rightmove said the level of unsold stock had risen for the sixth month in a row, even though the number of properties coming onto the market was at 鈥渉istorically low levels鈥�.