House prices fall as buyers stay away

The average cost of a home in the UK dropped by nearly 2,400 to 164,381 during the month, as the downward trend in prices seen since the start of the summer continued, Nationwide said.

House prices have either fallen or remained static each month since the end of May, with the drops seen during 2010 nearly wiping out the gains made during the early part of the year.

The quarter-on-quarter change to house prices, which is generally seen as a smoother indicator of market trends, also showed that the rate at which property values are falling has accelerated.

House prices dipped by 1.5 per cent during the three months to the end of October, compared with a 1 per cent slide during the quarter to the end of September, the biggest fall since April 2009, said Nationwide.