House prices 'falling fastest since records began'

Statistics released by the nation's largest lender Halifax have revealed that house prices in August are down 12.7 per cent on last year.

The average price of a home in the UK is now £174,178, which is similar to the levels seen in February 2006, the house price index disclosed.

Compared to July, house prices in August are down 1.8 per cent, which is comparable to July (1.7 per cent) and June (1.9 per cent) but not likely to be good news for anybody planning to sell a residential building purchased in recent years.

Commenting on the figures, Martin Ellis, chief economist at Halifax, said: "The pressure on householders' income, together with the reduction in the availability of mortgagefinance due to the global financial markets crisis, is resulting in both lower property prices and activity levels."

However, Mr Ellis added that a solid labour market, low interest rates and a shortage of new houses continue to support the market.

The Telegraph, citing credit rating group Standards & Poor's, has reported that the number of homeowners in negative equity has grown to more than 200,000.