Average house prices have fallen by 3.7% over last 12 months

Houses prices fell by 1.7% last month, according to the Halifax.

Average prices for April 2010 were £160,395, a 3.7% fall on the same month last year.

Halifax housing economist Martin Ellis said: “The latest figures show that the underlying trend in house prices continues to be one of modest decline.”

Ellis said confidence was weak among households because of uncertain economic outlook, but he added that other factors meant any more decline would be mild.

He said: “Signs of a modest tightening in housing market conditions, a relatively low burden of servicing mortgage debt and an increase in the number of people in employment are all likely to be providing support for house prices, curbing the pace of decline.”

Earlier this month the Nationwide reported a 0.2% in average house prices for April.