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UK house price fall 'at a record' ... for the first time since 1990, according to the latest survey from the Nationwide.
The 10.5% annual decline came after house prices dropped by 1.9% in August, the building society said.
The average home now costs Ј164,654 which is more than Ј19,000 cheaper than in the same month last year.
Gloomy forecasts from house builders mean the market is likely to remain subdued, Nationwide says.
The Nationwide survey found that house prices have fallen for 10 months in a row and are at their lowest level since early 2006.
Fixed-rate favour
Data from estate agents suggested "there may be some glimmers of interest returning to the market", said Nationwide's chief economist Fionnuala Earley.
But she said that an "increased supply of properties on agents' books will continue to act as a dampener to house price growth in the short term".
House builders were pointing to a loss of consumer confidence for the continued slowdown, the report said.
And it added that the lack of availability of mortgages was still pushing down house purchase activity.
"There is clearly less mortgage borrowing taking place in the current market, but those borrowers choosing a new loan are tending to opt for fixed rate loans, even though they have been more expensive than trackers," Ms Earley said.
Earlier this month, figures from the Council of Mortgage Lenders (CML) suggested that the slump in mortgage lending continued in July.
Total lending stood at Ј24.8bn, up by 5% from June, but still 27% lower than a year ago.
(BBC)
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