UK house prices suffered a 3.6 per cent drop between August and September, according to new figures published today.
The figures, which were compiled by Halifax, suggest that the average house in the UK is now valued at £162,096.
The fall represents the biggest monthly house price drop ever recorded, according to the Halifax.
But many analysts have suggested that the latest survey may not be an indication that such a dramatic downward trajectory will continue. Howard Archer, IHS Global Insight chief UK and European economist, told the BBC that while prices are likely to keep falling, "the September house price drop highly likely overstates the weakness of the housing market."
Transaction levels in the housing market remain very low, with buyers often unable to secure a mortgage and many potential sellers still shackled by negative equity or uncertainty about the state of the market. This increases the potential for monthly anomalies.
When the three-month period to the end of September is compared with the previous three-month period, the monthly fall is reduced to a less concerning 0.9 per cent.
The housing market is seen by many as an early indicator of the state of the economy at large, and many commentators are concerned that recent fragile housing data could suggest a 'double-dip' is on the way.