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Thu 30 Oct 2008 01:43 PM

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UK house prices see highest monthly fall for 17 years

Prospect of recession deters people from buying property, according to new report.

UK house prices fell the most in seventeen years in October as the prospect of recession deterred people from buying property.

The average cost of a home fell 14.6 percent in October compared to a year earlier, according to data published by Nationwide Building Society.

“House prices in the UK fell for the twelfth consecutive month in October,” said Nationwide chief economist, Fionnuala Earley.

The price of a typical UK house is now 158,872 pounds ($262,837), almost 30,000 pounds less than a year ago.

The Bank of England policy maker David Blanchflower said yesterday that Britain faces a "deep and long-lasting" recession unless rates are cut "significantly" soon.

The latest negative housing data could encourage the Bank of England to follow the US Federal Reserve, which yesterday cut its interest rate to 1 percent.

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