House prices fell further last month as the property market suffered its worst slump since 2009.

Homeowners saw the value of their bricks and mortar drop by 3.8pc in the year to June, according to the Nationwide house price index. 

It comes after the annual rate of house price growth contracted by 3.5pc in May from 2.7pc in April.

The average home is now worth £260,828, which is 4.5pc below the peak in August 2022.

From month to month, house prices fell 0.2pc, following a 0.1pc drop in May.

Nationwide’s chief economist Robert Gardner said: “Annual house price growth edged down to minus 3.8pc in July. 

“This was the weakest outturn since July 2009, although it is only modestly lower than the 3.5pc fall recorded last month.”

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