House prices fell by less in June than they did the previous month, according to Nationwide.

Property prices dipped by 0.9 per cent, less than half the amount they fell by the previous month.

The slump in price means property prices were 6.3 per cent lower than this time last year.
But prices still remain higher than they were two years ago.

Fionnuala Earley, Nationwide''s chief economist, said: "The pace of house price falls slowed significantly in June.

"[But] The price of a typical house is now £172,415. This is over £13,500 less than it would have cost at the top of the market."

The average house price is more than £1,000 less than it was in May this year.

House prices dropped by 2.5 per cent in May, according to Nationwide, but were only 4.4 per cent than in May 2007.

The building society said that people are better placed to "weather the storm" than they were in the 90s.