The housing market is falling at more than 10% year on year, the most dramatic collapse in the sector's recorded history, the Halifax mortgage bank will reveal this week.
Even in the 1990s, Britain did not face double-digit annual falls in house values. The figures will show the cost of the average UK purchase fell below £180,000 in July, returning prices to mid-2006 levels. That compares with a peak of £199,600 last August.
In June, Halifax forecast house prices would fall by up to 9% this year but its figures will show the annual rate already exceeds that. However, when the bank's parent, HBOS, last week revealed profits hit by provisions against falling property values it admitted the consensus is for prices to fall 15-20% during 2008 and 2009.
Independent on Sunday