House prices dropped for the eighth month in a row as mortgage approvals plummeted.

Homeowners saw the value of their bricks and mortar drop by 5.3pc in the year to September, according to the Nationwide house price index. 

It continues a series of annual falls that began in February, although the rate of decline was the same as reported in August.

Compared to the previous month, prices were unchanged as the market was delivered some respite from the Bank of England’s decision to hold interest rates steady for the first time in nearly two years at 5.25pc.

The survey found that the value of a typical house fell to £257,808, compared to £259,153 the month earlier.

Nationwide’s chief economist Robert Gardner said: “Housing market activity remains weak, with just 45,400 mortgages approved for house purchase in August, about 30pc below the monthly average prevailing in 2019 before the pandemic struck.”

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