House prices plunge 10.5%

House prices are falling at their fastest rate for nearly 18 years as potential buyers stay away from the market, figures showed today.

The average cost of a home in the UK has dived by 10.5 per cent during the 12 months to the end of August, the biggest drop since the final quarter of 1990, according to Nationwide Building Society.

The rate at which property values are sliding also accelerated during the month, with prices falling by a further 1.9 per cent in August, following drops of 1.5 per cent and 0.9 per cent in July and June respectively.