Recent research has found that housing purchase activity has reached a "new low", according to Nationwide, with new mortgages following suit.
The building society detected an average house price drop of over £3,000 from June 2008 to £169,316 this month, making an annual fall in house prices of 8.1 per cent, although the average is still £11,000 higher than three years ago.
The lender attributed weakening economic conditions such as a slowing gross domestic product, rises in energy and fuel as well as higher food process to be determining factors in the price crash.
Commenting on the current situation, Nationwide chief economist Fionnuala Earley said: "The encouraging news is that this has filtered through to the swaps market.
"Swap rates have fallen which has allowed new fixed mortgage rates to come down."
Earlier this month, Nationwide recommended to customers to open regular savings accounts after finding that only a quarter of customers believed that saving was very important.
JST Financial, New Mortgage, Re-mortgage Specialists catering for good and adverse credit for UK homeowners 