Prices have dropped by almost 13 percent over the past year, according to the lender.
House prices are falling at the fastest rate on record, Halifax claimed today.
According to the mortgage lender's latest property index, the value of the average UK home is now 12.7 percent below what it was a year ago, the highest such figure since the survey began in 1983. A monthly drop of 1.9 percent for August was also registered by the firm.
On average, Halifax said, the typical UK home costs just over £174,000.
The results are roughly in line from the latest house price findings on the Nationwide index. The rival lender claims that value has been eroded by 10.5 percent over the past 12 months.
Martin Ellis, chief economist at Halifax, said: "The pressure on householders' income, together with the reduction in the availability of mortgage finance due to the global financial markets crisis, is resulting in both lower property prices and activity levels."
The economist welcomed the government's recently-announced plan to suspend stamp duty on all homes worth £175,000 or more for a year, however. "This week's announcement on stamp duty is a welcome development and will benefit a significant number of homebuyers, particularly outside the South East of England. Market conditions, however, will remain challenging," Mr Ellis said.
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