The average UK house price has dropped by 3.9% over the past year, with more declines expected, as sellers become more realistic about the value of their property, according to house intelligence firm Hometrack.

Sellers keen to offload their properties amidst a still uncertain market are willing to drop their property asking price in order to guarantee interest, Hometracks research revealed. But while prices may be falling, the number of sales agreed by estate agents rose by 10.6% in June - its highest level for three months - due to lower property prices.

Prices fell by 0.1% in June and have now dropped in 11 of the past 12 months, and experts predict they will fall by about 1% in the second half of the year as more new homes come on to the market.

"The second half of the year is set to see subdued demand keeping a further downward pressure on prices,” said Hometrack Research Director Richard Donnell.

"While the balance between supply and demand is not significantly out of kilter, subdued demand and weak consumer confidence are set to keep headline prices under modest downward pressure over the months ahead."

The research revealed that market activity varies widely around the country, in which demand for homes in London remains strong where the average time a property stays on the market is at just six weeks, compared to Wales, for example, where it takes an average of 14 weeks for sellers to find a buyer.

For further advice on this or any other property related issues please contact Andrew Jacobs on Andrew.Jacobs@seddons.co.uk