House prices fell a further 2% in June - making a 6.15 drop in the past 12 months - according to figures released this morning by the Hallifax.

The drop is slightly up on the 2.5% fall recorded in May.

The figures from the UK's largest mortgage lender show the average house price is £180,344 - the same as it was in August 2006.

UK house prices have risen by 196% (£119,379) since the trough of the 1990's housing market downturn in July 1995.

Prices increased for 48 consecutive quarters between 1995 Q4 and 2007 Q3 with the exceptions of 2000 Q2 when prices fell slightly (-0.1%) and 2005 Q2 (0.0%).

Houses for sale at August 2006 prices
Houses for sale at August 2006 prices

Martin Ellis, Halifax chief economist, said: 'House prices have declined by 6.1% over the past year. Nonetheless, the average UK price remains slightly higher than two years' ago and is appreciably stronger than three or four years ago.

'The average UK price has risen by 150% during the past decade from £72,096 to £180,344; an increase of £108,248.

'A strong labour market, low interest rates and a shortage of new houses underpin housing valuations. Our research shows that the labour market is the key driver of the housing market. Employment is at a record high.'

The full report from the Halifax is attached to this article.