House prices have fallen as the fear of recession grips the buyers yet again. Read the exclusive report at Tej Kohli Blog.

If economists are to be believed, the house prices could fall further by 20 percent if confidence fails to recover.

In July the average values dropped by 0.5 percent, cutting down the yearly rate of decline to 6.6 percent from 8.7 percent in the last month.

It brings down the cost of a standard house in Britain below £170,000, reveled the figures from Nationwide.

“There was also a sizeable drop in the annual rate of house price inflation from 8.7 per cent in June to 6.6 per cent in July, due in part to the strength of house price gains in the same month last year.” said Martin Gahbauer, Nationwide’s chief economist.

These numbers are on a par with widespread forecasts that house prices will remain flat this year and may drop further in 2011.

The onus of this recent decline is on shortage of buyers, turned off by huge unemployment and the crunch on household budgets.

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