The downward motion in UK house prices continued during October, with more than £2,000 shaved off the value of the average home in the month.
Prices fell by 0.7% in October, taking the average value of a property to £164,381, down from £166,757 in September, figures from Nationwide show. The three month on three month rate of change – considered a smoother indicator for price trends – fell to -1.5% in October from -1.0% in September. It marks the largest decline over three months since April 2009, although it remains comfortably below the 5% to 6% rates of decline that characterised the second half of 2008.
"The annual rate of change - which compares the current level of house prices against their level 12 months ago - declined from +3.1% in September to +1.4% in October," commented Martin Gahbauer, Nationwide's chief economist.
"If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010.
"This would compare to a rate of +5.9% at the end of 2009."
Despite falling prices, conditions remain tough for would be buyers, as evidenced by recent figures which show markedly low levels of mortgage applications.
First time buyers, considered to be the life blood of a healthy market, are struggling to gain a foothold on the property ladder because of a lack of high loan-to-value mortgages and high deposit requirements.
However, if declining house prices are enough to reignite your interest, the Moneyfacts.co.uk Best Buy tables are a great place to find the mortgage to suit you. The tables include offerings from the likes of first direct, HSBC, Woolwich Mortgage and Yorkshire Building Society.
Find the best mortgage rate - Compare best selling mortgages
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.