Latest figures from Nationwide found that the continued fall in house prices slowed in June to -0.9% from May’s figure of -2.5%, with the average house now being valued at £172,415.

Annually, house prices continued to decline at a faster rate in June (-6.3%) compared to May (-4.4%). But these figures need to be taken in the context of house prices reaching a peak last year and that when compared to two and three years ago prices still remain high at +4% and +9% respectively.

The report also looked at the regional picture and found that London’s market was the most active and its property prices fell the least over the last year (-2.3%). Scotland had the second most active market and was the only region to experience any annual growth in prices (+0.6%). At the other end of the spectrum was Northern Ireland which had the weakest market and has seen house prices fall nearly 20%, far beyond what any other region has experienced.

Fionnuala Earley, chief economist for Nationwide, said: “ Northern Ireland continued to show by far the steepest correction in house prices across the UK. The recent falls came on the back of unusually sharp increases in prices during 2006-7. These increases were clearly not sustainable and left the market in Northern Ireland particularly vulnerable to external shocks. We are now seeing the consequences of that excess vulnerability. However, even with the last two quarters of very large falls, the price of a typical property in Northern Ireland is still higher than at the end of 2006.”