House prices 'plummet for 12 months'

House prices have fallen for 12 consecutive months since November last year, according to new research.

Nationwide''s latest monthly house price index shows that an average house is worth 14.6 per cent less than it was in October of last year after falling by a further 1.4 per cent this month.

A typical home now costs £158,872 – almost £30,000 less than peak values recorded in 2007 but almost £30,000 more when compared with prices in 2003.

Fionnuala Earley, Nationwide''s Chief Economist, said: "Consumers still expect prices to continue to fall into 2009 and will therefore be reluctant to trade without some discount on the asking price."

She added that this type of stalemate severely limits the number of transactions taking place and adds to the downward pressure on house prices.

According to the Royal Institution of Chartered Surveyors, with Britain''s economy teetering on the brink of recession short-term house price recovery is unlikely.

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