By Daniel Hunter

The typical UK house price fell by 0.6% in June according to Nationwide, who cite the weakness of the economy as the main reason behind the fall.

As well as the poor state of the economy the building society says that the end of the stamp duty holiday in March, which provided a boost for the market early in the year, was at fault for the drop.

"Economic conditions are expected to remain challenging over the next twelve months," Robert Gardner, Nationwide's chief economist, said.

"However, policymakers' efforts to bolster the supply of credit to the economy and to help lower the cost should provide support to demand."

The annual decline in prices now stands at 1.5%, the sharpest decline in almost three years, the building society said.

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