Annual price fall reached 10.5% in August, announces Nationwide

UK house prices have seen a double-digit annual fall for the first time since 1990, according to a report by the Nationwide.

The price of a typical house fell by 1.9% in August, bringing the total fall in price over the past year to 10.5%.

According to the building society, a typical home now costs 拢164,654 - more than 拢19,000 cheaper than in August last year, and over 拢4,000 cheaper than the average home cost just last month.

Fionnuala Earley, Nationwide's chief economist, described activity levels on the housing market as 鈥渧ery subdued鈥�.

鈥淗ousebuilders in particular have been reporting significant reductions in site visits and report that a lack of confidence in the market is the biggest reason behind the drop-off in demand,鈥� she said, 鈥渁lthough changes in lending criteria are also reported as an issue.

鈥淭here is clearly less mortgage borrowing taking place in the current market,鈥� said Earley, 鈥渂ut those borrowers choosing a new loan are tending to opt for fixed-rate loans, even though they have been more expensive than trackers.鈥�

Data from estate agents offered 鈥済limmers of interest returning to the market鈥�, she said, but admitted that the reported number of sales had 鈥渘ot been encouraging鈥�.

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