House prices have fallen by 1 per cent during the past 12 months, the first year-on-year fall since 1996, figures showed today.

the drop needs to be seen in the context of the strong house price growth seen in recent years, with house prices soaring by 45.5 per cent during the past five years.

Just 64,000 loans were approved for people moving house during the month, the lowest figure since the Bank of England began to collect data in April 1993 and 44 per cent below March 2007's level.

The Nationwide figures are the latest in a line of gloomy data on the property market, with Halifax reporting price falls of 2.5 per cent during March, the biggest monthly drop since 1992