Average house prices in England and Wales look set to fall by 3.8 per cent between June and August based on details entered by buyers searching for home moving services in recent months.

The data, from Reallymoving, suggests that on a seasonally-adjusted basis the fall will be even greater at 5.1 per cent.

The predictions for prices are based on the property details entered by 8,000 home movers who used the website to compare prices for conveyancing between March and May.

Buyers typically register for quotes twelve weeks before their purchase completes, which provides an indicator of house price trends over the months ahead.

The data suggest that average house prices will fall from £308,280 in June to £296,485 in August when those deals complete.  

Reallymoving points out that property prices used in its index are collected at the beginning of the purchase process, when buyers agree a deal and seek conveyancing quotes.

While the figures provide an early snapshot of the impact of lockdown on the housing market, the forecast may be less reliable than usual as transactions could take longer to conclude and some prices are likely to be renegotiated from pre-lockdown offers.

Prices are on course to see the first month of negative annual growth in over a year, falling by 1.4 per cent in August 2020 compared to August 2019.

Chief executive Rob Houghton says: “We’ll have to wait several months at least before the true impact of Coronavirus on the housing market becomes evident, but early signs suggest that while prices have fallen and buyers have undoubtedly tightened the purse strings, the initial hit may not be as severe as some analysts feared.

“For sellers now facing a period of great uncertainty and a scarcity of buyers, doing a deal at a reduced price of 3-4 per cent could look considerably more appealing than sitting tight and waiting to see what happens over the next few months.

“Transaction volumes are at half their normal levels and the economy is currently propped up by the government through the furlough scheme alongside mortgage payment holidays, so although the market is open once again, its underlying health has not yet been tested.

“Levels of unemployment and confidence in the jobs market will be key factors in determining whether the housing market recovers in the autumn with a levelling out of prices or continues in a downward trajectory.”