House prices fell for the second month running during August as the market continued to feel the effects of rising interest rates, figures showed today.

Property web site Hometrack said prices in England and Wales dipped by 0.1 per cent during the month to August 18 to average £152,100.

It is the second month in a row they have fallen and monthly growth has been steadily falling since February.

The group said during August the number of people looking to buy also fell by four per cent, wiping out the excess demand there had been in the market.

Monday August 23, 2004