//
The news is further evidence that traditional markets are losing their viability.
Asking prices have dropped by 6.3 per cent on the year and sale prices are around 25 per cent below the recorded peak, according to Rightmove.
House prices in the capital fell by 5.1 per cent on the year, but increased by 0.4 per cent on the month.
In October, banks approved 32,000 mortgages, equal to the lowest number since 1999.
Miles Shipside, commercial director at Rightmove, told Bloomberg Television: "It's tough out there. The market will be affected by the unemployment that's coming.
"While it's sad, we do need to reach the bottom and that will probably happen in 2009."
Rightmove is one of the UK's leading property websites, aiming to provide house-hunters with up-to-date housing information.
