The Halifax released its latest monthly report showing almost exactly the same fall in prices reported for the same month by the Nationwide just a week ago.  Britain's largest lender estimated that average prices in the UK were down by 2.4 per cent in May. No separate data was available for Scotland

Like the Nationwide, the Halifax pointed out that the fall was tiny compared to recent gains.   Chief Economist for the Halifax, Martin Ellis, said: "Price falls should be measured against the significant gains in recent years. The average UK house price rose by more than £88,000, or 79 per cent, between August 2002 and August 2007.

Mr Ellis pointed to the reduction in credit and a squeeze on household spending power as key drivers of market trends.  But he argued that high employment levels, low interest rates and a shortage of new homes would support property values.