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House prices' biggest annual fall since Nationwide survey began in 1991

By Faisal Islam

Updated on 31 July 2008

House prices are falling at a record rate, with their biggest annual drop since Nationwide began its survey in 1991.

The survey shows the average house price has now fallen more than eight per cent since a year ago.

The credit crunch is also hitting mortgage providers. HBOS, which owns the country's biggest lender, Halifax, said its pre-tax profits for the first six months of this year had plunged by 72 per cent.

The bank also said it was worried about more bad debts, as customers struggle to repay their home loans.

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