The latest figures from the Halifax have shown that house prices fell 1.1 per cent in October.
That represents the fastest decline in prices since October 2000.
Halifax, the UK's largest mortgage lender, attributes this drop off to increases in the cost of mortgages, brought about through hikes in the Bank of England's base rate.
Martin Ellis, chief economist at the Halifax: "Recent price movements confirm that the Bank of England's interest rate hikes have taken impetus away from housing demand while first-time buyers continue to be held back by affordability constraints."
Following the drop in prices the average cost of a house now stands at £160,857.To read more about UK property, click here.
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