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| UK house price fall 'at new low' | UK house price fall 'at new low' |
| (10 minutes later) | |
| UK house prices showed their biggest annual fall since the Nationwide began its housing survey in 1991. | UK house prices showed their biggest annual fall since the Nationwide began its housing survey in 1991. |
| The 8.1% annual decline came after house prices dropped by 1.7% in July, the building society said. | The 8.1% annual decline came after house prices dropped by 1.7% in July, the building society said. |
| The average home now costs £169,316 which is nearly £15,000 cheaper than in the same month last year. | The average home now costs £169,316 which is nearly £15,000 cheaper than in the same month last year. |
| The Nationwide survey found that house prices have fallen for nine months in a row and were at their lowest level since August 2006. | The Nationwide survey found that house prices have fallen for nine months in a row and were at their lowest level since August 2006. |
| Property prices were still £11,000 higher than three years ago, the survey found. | |
| "The weakening economy and poor housing market sentiment do not suggest that the market will recover quickly," said Fionnuala Earley, Nationwide 's chief economist. | |
| 'Belt tightening' | |
| Ms Earley said that consumers are tightening their belts in the current climate. | |
| But she added that swap rates - the key driver of mortgage rates - had fallen slightly, which had allowed new fixed rate mortgage deals to come down in cost. | |
| "As the cost of mortgages begins to come down, activity could be bolstered and restore some liquidity to the housing market," she said. | |
| "However this is not expected to happen overnight." | |
| If oil prices continued to fall, this could increase the possibility of rapid cuts in interest rates, which she described as good news for borrowers. |