» Nationwide release their latest house price index

Nationwide has revealed house prices fell by 1.9% in August.

Article Published: 28th August 2008

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Each month Nationwide Building Society report on the state of the UK housing market and their latest report released today reveal that house prices fell by 1.9% in August. This now takes the annual drop in house prices to 10.5% which is now the largest fall in residential property since 1990.

The latest house price report from Nationwide Building Society has revealed house prices fell by 1.9% in August, taking the annual drop to 10.5% - the largest fall since 1990.

The lender noted that the activity in the housing market is “very subdued” and as a result of this the average price of a property is now £164,654.

However in the last few weeks mortgage rates have been coming down and there are now rates under 5% for both residential and Buy to let properties. Nationwide research has shown that borrowers still prefer a fixed rate mortgage with 44% of borrowers saying that they would be more likely to look for a fixed rate.

Fionnuala Earley, chief economist at Nationwide, said: "There is clearly less mortgage borrowing taking place in the current market, but those borrowers choosing a new loan are tending to opt for fixed rate loans, even though they have been more expensive than trackers.