House prices fell by 0.9% in June, less than half the rate of the previous month according to the latest results released by Nationwide.

Prices are 6.3% lower than this time last year and have fallen 7.3% from their peak last October. However prices remain 4% higher than two years ago.

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said: "The pace of house price falls slowed significantly in June. The price of a typical house is now £172,415. This is over £13,500 less than it would have cost at the top of the market and over £11,500 less than this time last year. However, the strength of house price growth up until last year means that prices are still 9% higher than three years ago.


"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."

(CD/JM)