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According to a recent report July has seen a 2% fall in asking prices on UK properties that are for sale. Figures showed that asking prices fell 2% on a year on year basis on properties in England and Wales.

The information comes from the property website Right Move. The average asking price according to Right Move is now £235,219, which reflects a £4000 year on year fall. Although seasonal factors were not taken into account with the figures, officials stated that they reflected the worsening housing market downturn.

This comes as lenders continue to tighten up on their lending criteria and the economy continues to feel the effects of the global credit crunch.

Miles Shipside, commercial director at Rightmove, stated: "The drop in transaction levels is the most alarming characteristic of the current market and has the most widespread impact." He added: "As well as job losses in both the residential and commercial property industry, there is a massive knock-on effect to other areas of the economy as consumers spend less."

Since last July the number of new sellers on the market has also fallen by around one fifth according to the property website. Estate agents continue to report poor sales figures in relation to the average number of properties being sold per agent.

This has raised concerns amongst many officials that many estate agents and other related industry professionals could lose their jobs through lack of activity in the housing market.

One of the factors that has been largely blamed for the downturn in housing sales is the lack of mortgage loan products and difficulties in obtaining affordable mortgages, which has resulted from the global credit card crunch.

A Right Move official added: "Any meaningful increase in sales volumes will require a U-turn in current lending policies by banks and building societies."

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