UK house prices fell by 1.3% in January bringing the annual rate of decline to 16.6%, according to Nationwide's latest house price index.
The average price of a typical house at £150,50 is now down 16.6% from 12 months ago.
Martin Gahbauer, Nationwide's senior economist, said: ‘The price of a typical house fell by a further 1.3% in January, as the deepening economic recession and financial market turbulence continued to weigh on housing market sentiment and activity.
‘The 3-month on 3-month rate of change, a smoother indicator of the short-term trend in prices, improved for the fourth consecutive month from -4.2% in December to -4.0% in January. However, it is too early to say that this marks the start of a sustained improvement in the short term trend.’