UK house prices fall at sharpest rate for 14 years, says Nationwide

UK house prices dropped at their fastest annual pace for 14 years in July, according to Nationwide. 

House prices dropped by 3.8% – the biggest decline since July 2009.

The banking society said mortgage interest rates remain high making affordability a challenge for house-buyers. 

July saw mortgage costs hit the highest levels in 15 years as lenders grabbed with inflation and uncertainty over rates set by the Bank of England. 

The average price of a home in the UK is £260,828, which is 4.5% below a peak in August last year.