House prices plunged by 14.6 per cent over the last year, according to the Nationwide Building Society.

The mortgage giant said prices fell by a further 1.4 per cent in October after 11 consecutive monthly falls, setting a new all-time low for its house price index.

The average price of a UK property now stands at £158,872, almost £30,000 less than a year ago.

The data shows that while the annual decline has reached a new record, the monthly drop has continued to slow for the fourth consecutive month.

But Nationwide's chief economist Fionnuala Earley said it was a further sign that the UK was heading into recession, which would put further pressure on prices.

"There is little doubt that the economy is heading into recession," she said.

"As the economy weakens further there is likely to be more movement on asking prices as sellers adjust to the prevailing conditions and reassess their own needs.

"While there will always be a rump of sellers who will need to move in order to accommodate job or family changes there will be others who are affected by economic conditions more acutely.

"So we should expect a moderation of price expectations on the part of sellers in a weaker economic environment."

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