FTAdviser.com

Advertising

Overall prices are still 6.3 per cent lower than this time last year and have fallen 7.3 per cent from their peak last October.

However, despite the recent falls, prices still remain 4 per cent higher than two years ago, and 9 per cent higher than three years ago.

The average house price is now £172,415, over £13,500 less than at the top of the market in October and over £11,500 less than this time last year.

Nationwide's chief economist Fionnuala Earley said: "With house purchase transactions so far below their long term trend it seems unlikely that there will be any rapid turnaround in housing market fortunes in the coming months.

"However, as prices continue to fall affordability measures become more favourable for those in a well financed position to be able to buy."