Last month house prices fell by just 0.9%, less then half the rate of last month according to Fionnuala Early, Nationwide’s Chief Economist. “Prices in June are now 6.3% lower than this time last year and have fallen 7.3% from their peak last October.”

Although the downturn has slowed prices are 6.3% lower than this time last year but house prices are still 4% higher than two years ago and 9% higher than 3 years ago.

House purchases are still slow but mortgage lenders are attempting to remain competitive and if house prices begin to stabilise the buyers put off by the recent decline may once again consider taking the plunge.