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UK house prices record biggest annual drop since 2009

UK house prices have dropped by the largest amount in 14 years, according to fresh data from Nationwide.

Prices for July fell 0.2 per cent on the previous month and 3.8 per cent on the same month last year, the largest fall since 2009, the Nationwide house price index showed. The average cost of a home in the UK is now £260,828.

House prices have come under increasing pressure as lenders have increased mortgage costs in response to higher interest rates.

In June, house prices remained broadly flat compared with the previous month, Nationwide’s data showed, but were 3.5 per cent lower than the same month last year.

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