By Marcus Leach

Property sales agreed by agents rose by over 10% in June according to data released by the housing intelligence company Hometrack.

Further to that, they say house prices have dropped by 3.9% over the past 12 months, with a further decrease expected as sellers face up to the reality of property values.

House prices have dropped in eleven out of the last twelve months, and with a subdued level of demand they will continue to fall despite an increase in the number of houses going onto the market.

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

"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."

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