House prices fell by almost 11 per cent in the year to July, figures showed on Thursday – one of the biggest year-on-year falls recorded in the UK.

The decline, which means all house price gains since June 2006 have now been wiped out, underscores the speed at which the nation’s housing market is deteriorating. The Halifax House Price Index showed prices in July were 10.9 per cent lower compared with the same month last year, and 1.7 per cent below those of the previous month.