The average UK house price is falling at its fastest rate since 2009.
A Nationwide Building Society index shows property values slipped by 3.8 per cent in the year to July.
It marks the poorest reading since July 2009.
House prices dropped by 0.2 per cent month-on-month in July, to reach £260,828 on average.
This is up from 32 per cent a year ago and well above the long-run average of 29 per cent.
The price of a typical home is now 4.5 per cent below the August 2022 peak.
The bad news for the housing market comes as further Bank of England rate increases are predicted.
Robert Gardner, Nationwide’s chief economist, said:
“Investors’ views about the likely path of UK interest rates have been volatile in recent months.
“There has been a slight tempering of expectations in recent weeks but longer-term interest rates, which underpin mortgage pricing, remain elevated.
“As a result, housing affordability remains stretched for those looking to buy a home with a mortgage.
