Houses have lost 14.6% of their value during the year to the end of October following 12 months in a row of plunging prices.

The Nationwide Building Society said prices fell by a further 1.4% in October, setting a new all-time low for its house price index.

The average price of a UK property now stands at £158,872, almost £30,000 less than a year ago.

The price data shows that while the annual decline has reached a new record, the monthly drop has continued to slow for the fourth consecutive month.

But Nationwide's chief economist Fionnuala Earley said it was a further sign that the UK was heading into recession, which would put further pressure on prices.

"There is little doubt that the economy is heading into recession," she said.

"As the economy weakens further there is likely to be more movement on asking prices as sellers adjust to the prevailing conditions and reassess their own needs.

"While there will always be a rump of sellers who will need to move in order to accommodate job or family changes there will be others who are affected by economic conditions more acutely. So we should expect a moderation of price expectations on the part of sellers in a weaker economic environment," she added.

The current price falls are being compounded by a reluctance among sellers to reduce their asking prices, according to the Nationwide.

It said sales were often only going through when sellers were willing to budge on price.