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House prices fell at their fastest annual rate for 19 months in May, according to the latest set of figures from Halifax.
Prices dropped, on average, 4.2% over the last year, during the three months to the end of May, compared with the same period in 2010.
It was the biggest annual drop since October 2009 and means the average home costs £160,519.
On a quarterly basis, however, prices dropped 1.2%, unchanged from the three months to the end of April.
Martin Ellis, Halifax housing economist, said: “Low earnings growth, higher taxes and relatively high inflation are all putting pressure on household finances.
“Confidence is also weak as a result of uncertainty about the economic and employment outlook. These factors are probably constraining housing demand and applying some downward pressure on prices.”
