HOUSE prices fell 0.1% last month, a key survey reveals, as pressure on household incomes heightened.

The fall in house prices comes as the number of new buyers registering with estate agents fell 1.2% in August, compared to 1.1% growth in July, as demand for new housing weakened, property analyst Hometrack said.

Elsewhere, the survey showed the percentage of properties being sold for the asking price dropped from 92.7% in July to 92.5% in August, while sales agreed fell by 3.6% and the time properties were on the market increased to 9.5 weeks last month from 9.4 weeks in July.

House prices are set to continue to fall for the remainder of the year, Hometrack warned, as weak consumer sentiment, pressure on incomes and an uncertain economic outlook persist.

Richard Donnell, director of research at Hometrack, said a seasonal decline in buyers is expected but added “there is no doubt that pressures on household incomes are building and recent survey evidence suggests consumer confidence remains weak”.

He went on: “The time taken to sell a property is a lead indicator in Hometrack’s monthly housing survey and provides a true insight into the relative health of the housing market.”