UK house prices have fallen for an 11th consecutive month, dropping by 1.7% in September, according to the Nationwide.
UK house prices have fallen for an 11th consecutive month, dropping by 1.7% in September, according to the Nationwide.
The lender recorded a 12.4% annual drop in prices, pushing the cost of the average UK home down to £161,797, more than £20,000 less than a year ago.
The lender recorded a 12.4% annual drop in prices, pushing the cost of the average UK home down to £161,797, more than £20,000 less than a year ago.
Nationwide said the pace of house price falls had stabilised, but warned the next year or two would be "difficult".
Nationwide said the pace of house price falls had stabilised, but warned the next year or two would be "difficult".
House prices were down year-on-year across the UK, with southern England suffering worse than the north.
House prices were down year-on-year across the UK, with southern England suffering worse than the north.
The rate of fall, which was the same as in August, has remained relatively unchanged in the past three months.
The rate of fall, which was the same as in August, has remained relatively unchanged in the past three months.
'All change'
'All change'
"Casting back one year, there have been some astonishing and unpredictable developments in the housing and financial markets," said Fionnuala Earley, Nationwide's chief economist.
"Casting back one year, there have been some astonishing and unpredictable developments in the housing and financial markets," said Fionnuala Earley, Nationwide's chief economist.
But she added that in the long-term there was no reason why house prices would not continue to grow in real terms even though there was a "sharp correction" now.
But she added that in the long-term there was no reason why house prices would not continue to grow in real terms even though there was a "sharp correction" now.
How long the correction lasts and how deep the fall in prices is depends largely on sentiment, as well as an end to the turmoil in the financial markets, she says.
How long the correction lasts and how deep the fall in prices is depends largely on sentiment, as well as an end to the turmoil in the financial markets, she says.
Her analysis comes shortly after the Council of Mortgage Lenders suggested that predicting the short term course of house prices was "futile".
Her analysis comes shortly after the Council of Mortgage Lenders suggested that predicting the short term course of house prices was "futile".
Regional breakdown
Regional breakdown
The Nationwide has also released figures showing prices during the third quarter of the year in different areas of the UK.
The Nationwide has also released figures showing prices during the third quarter of the year in different areas of the UK.
A homeowner on being told to drop her original asking price
Ms Earley said that a distinctive feature of the July to September period was the accelerating fall in house prices in the south of England compared with the north.
Ms Earley said that a distinctive feature of the July to September period was the accelerating fall in house prices in the south of England compared with the north.
Four of the six regions registering double-digit price declines were in the South, with East Anglia and the South West showing the biggest annual drops - both 11.4%.
Four of the six regions registering double-digit price declines were in the South, with East Anglia and the South West showing the biggest annual drops - both 11.4%.
FIVE TOWNS WHERE PRICES ARE HOLDING Durham city: 2% annual rise. Average price £157,613Edinburgh: 3% drop, £249,587Oxford: 3% drop, £321,848Canterbury: 4% fall, £215,608London: 5% fall, £301,301
Northern Ireland showed the steepest decline in house prices across the UK, which are now 29.8% lower than a year ago.
Northern Ireland showed the steepest decline in house prices across the UK, which are now 29.8% lower than a year ago.
THE FIVE LOCATIONS LEAST AFFECTED BY THE DOWNTURN Durham city: 2% annual rise. Average price £157,613Edinburgh: 3% drop, £249,587Oxford: 3% drop, £321,848Canterbury: 4% fall, £215,608London: 5% fall, £301,301 Source: Nationwide
But the price rises had been so rapid in recent years, that prices are now only back to the same level as the third quarter of 2006.
But the price rises had been so rapid in recent years, that prices are now only back to the same level as the third quarter of 2006.
In Scotland, where house prices had risen in the second three months of the year, recorded a 5% drop between July and September compared with the previous three months. That was a bigger drop than the UK average of 4.6%.
In Scotland, where house prices had risen in the second three months of the year, recorded a 5% drop between July and September compared with the previous three months. That was a bigger drop than the UK average of 4.6%.
Wales witnessed the smallest fall in prices compared with other areas of the UK, with a three-month on three-month fall of 1.9% in July to September.
Wales witnessed the smallest fall in prices compared with other areas of the UK, with a three-month on three-month fall of 1.9% in July to September.
Have you been affected by falling house prices? Are you trying to buy or sell? Send us your comments using the form below.
Have you been affected by falling house prices? Are you trying to buy or sell? Send us your comments using the form below.
