House prices fall most in six months

London: British house prices fell the most in six months in August as increased supply gave buyers more bargaining power, the Nationwide Building Society said.

The average cost of a home dropped 0.9% from July, when they fell 0.5%, to £166,507 (€202,420), the lender said. From a year earlier, prices increased 3.9%, the weakest pace since November.

The British housing market recovery has faded as the prospect of the biggest budget squeeze since WWII undermined consumer confidence and spooked potential buyers.