Nationwide has warned that a recession may now be likely, as the average house price in the year to July fell to a three-year low of £169,316.
The average price of a home is now £15,000 lower than in July last year.
Nationwide state that house prices have fallen nine months in a row, and in July declined by 1.7% (in June the fall was 0.8%).
The question is what will the Bank of England do with rates this month?
There is of course a silver lining to this. Those who waited to buy a house, and did not rush into borrowing ludicrous multiples of income, are now in a much better position than a year ago.