UK house prices fell by 0.9% on average last month, according to the latest survey from the Nationwide.

The decline was less severe than the record 2.5% fall seen in May, but prices were now 6.3% lower than a year ago, the Nationwide said.

The average home now costs £172,415 and is £13,629 cheaper than at the top of the market in October last year.

The Nationwide survey found that the housing market in Scotland had been more resilient than elsewhere.

Although prices in the three months to June had fallen in Scotland by 1.8% compared with the previous quarter, it was the only area to see an annual growth, up 0.6%.

Nationwide suggested that the sharp rise in oil prices had benefited regions such as Aberdeenshire.

It also pointed to the fact that prices did not shoot up as quickly during the housing boom.

Pace of change

The credit crunch and the resulting difficulty for many to get a good mortgage deal has led to many potential buyers staying put across the rest of the UK.

The sometimes volatile monthly figures showed that the pace of price falls had eased, down 0.9% in June whereas it had dropped 2.5% in May. It was the eighth consecutive monthly fall in prices.

The year-on-year change across the UK was down 6.3% in June compared with 4.4% in May.

The Bank of England this week said that mortgage approvals in the UK has slumped to 42,000 in May, a 28% fall compared with the previous month and 64% down on a year ago.

Nationwide said the lack of activity in the housing market was key to prices, but its analysis suggested it was movers, rather than first-time buyers who were staying put.

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