House prices fell by almost 11% in the year to July, figures showed yesterday – one of the biggest year-on-year falls recorded in the UK.

The decline, which means all house price gains since June 2006 have now been wiped out, underscores the speed at which the nation’s housing market is deteriorating. The Halifax House Price Index showed prices in July were 10.9% lower compared with the same month last year, and 1.7% below those of the previous month.

The index’s July data are matched by another widely watched index compiled by Nationwide, but the Halifax data mark the first time that homes have posted a single-month double-digit drop, year-on-year, in the history of either index.

Nationwide’s housing index recorded a drop of 10.7% for the three months through December 1990 from the same period in 1989.

Financial Times, The Times