Halifax recorded a fall in house prices over the course of last month and predicted that further declines are likely.
House prices dropped by 1.7 percent during April, denting hopes of a recovery in the property market, according to Halifax.
The bank revealed that the average price of a home in the UK currently stands at £154,716, around the level seen in April 2004. Additionally, the annual house price fall reached 17.7 percent, up from 17.5 percent in March and equalling February's figure - which was a record for the index.
Some commentators had suggested recently that the housing market was improving, given reports showing increasing numbers of sales and mortgage approvals. Additionally, estate agents have reported an increase in interest from buyers.
But Halifax chief economist Martin Ellis suggested that further pain for homeowners is on the cards. "Rising unemployment, low consumer confidence and the reduced availability of credit are all expected to exert downward pressure on the housing market over the next few months," he said.
"As a result, further house price declines are likely."
The Halifax report is slightly at odds with recent figures from Nationwide, which showed a 0.4 percent fall in prices during April. Nationwide's statistics suggested that the average home costs 15 percent less than a year ago, but revealed that the pace of decline in property prices has slowed slightly.
