House prices falling at fastest rate in 12 years

PROPERTY prices plummeted at their fastest rate in 12 years last month with values set to fall even further, experts have warned.

- Sarah O'Grady

Britain's biggest mortgage lender said £8,000 had been wiped off the average three-bed semi as prices fell 2.6 per cent.

The average cost of a home is now £285,932, the largest yearly fall since June 2011, says Halifax.

Industry chiefs warn a housing crash could force owners to sell up if soaring interest rates mean they cannot afford to remortgage when cheap fixed-rate deals end.

Karen Noye, mortgage expert at Quilter, said: "The economic storm currently battering Britain seems like an insurmountable hurdle and downward pressure on house prices is inevitable. With two-year fixed rate mortgages now well above 6 per cent, people's ability to continue to service their mortgage will be called into question.