The drop in house prices deepened last month to the leave the market at its weakest since 2009 as mortgage approvals plummeted.

Homeowners saw the value of their bricks and mortar drop by 5.3pc in the year to August, according to the Nationwide house price index, wiping £14,600 off their value over the last year.

Compared to the previous month, prices were down 0.8pc.

The survey found that the value of a typical house fell to £259,153, compared to £260,828 the month earlier, and 5.3pc lower than when prices peaked in August last year.

It comes after the annual rate of house price growth contracted 3.8pc in July, deepening a fall of 3.5pc in June.

Nationwide’s chief economist Robert Gardner said: “The softening is not surprising, given the extent of the rise in borrowing costs in recent months, which has resulted in activity in the housing market running well below pre-pandemic levels. 

“For example, mortgage approvals have been around 20pc below the 2019 average in recent months and mortgage application data suggests the weakness has been maintained more recently.”

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