US house prices suffered a record annual decline of 15.8 per cent in May, according to data released on Tuesday, offering scant hope that the ailing US housing industry could be on the path to recovery.

The Standard & Poor’s Case-Shiller index showed home prices declining over the year in all of the 20 large US cities surveyed, with the worst drop – 28.4 per cent – in Las Vegas and the most modest decline – 0.2 per cent – coming in Charlotte, North Carolina.