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Record drop in house prices

Updated on 02 January 2009

By Siobhan Kennedy

House prices drop faster than at any time since records began in 1983.

The Halifax said house prices fell last year at their fastest rate since records began - down 16 per cent.

But two leading buildings societies defy the governnment's calls to pass on rate cuts to most of their mortgage customers, and warn savers are being unfairly penalised.

Economists have predicted a gloomy New Year and today's new figures appeared to back up that view.

And there was more bad news from the Bank of England. Its research suggests that government measures to shore up the mortgage market have so far had little impact.

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