House prices fell again during August indicating that the recent interest rate cut hasn’t immediately helped the market according to Hometrack.

August is the 14th month in succession that property prices have gone down, during which, the average cost of a property in England and Wales fell by 0.1%.

The average cost of a property in England and Wales is now at £161,000, nearly £7,000 less than recorded in June 2004.

Hometrack’s housing economist John Wriglesworth said: “House prices have failed to respond to the recent interest rate cut and continue their stagnating negative trend, which has now gone on for well over a year.

While transactions have picked up a little this month, a further reduction in new buyers and a further increase in supply suggests no prospect of price rises in the near future.”