House prices have fallen for the eighth month in a row.

According to the latest figures from the Nationwide Building Society; the average cost of a home in the U.K dropped by 0.9% last month to £172,415, while annual house price inflation slumped to -6.3%, the lowest level since December 1992.

The housing market downturn has now wiped 7.3%, or £13,500, off the value of homes compared with their peak in October last year, with prices falling by 6.4% since the beginning of 2008.

Mortgage approvals also down...

Figures from The Bank of England released on Monday showed that mortgage approvals for house purchases had slumped to a record low, suggesting there are further falls to come.

The Bank said just 42,000 new loans were approved for people moving during May, 28% below April's level and 64% down on the figure for the same month of 2007.

What happens next?

The Nationwide's Chief Economist, Fionnuala Earley, said "with house purchase transactions so far below their long-term trend, it seems unlikely that there will be any rapid turnaround in housing market fortunes in the coming months. However, as prices continue to fall, affordability measures become more favourable for those in a well financed position to be able to buy."

Does what's happening nationally reflect the East Midlands?

Heart's been speaking to Nottingham-based estate agent Shields & Co to find out.  Business Manager Gaynor Cunningham believes it's not all doom and gloom in Nottingham especially, and that business is finally starting to pick up. She told us "house prices have gone down by about 5% in the last 6 months but this certainly seems to be slowing down, with more valuations being done and more houses coming on the market."

According to Shields & Co, the average cost of a 3 bed house in Nottingham is between £150,000 and £160,000. Also, the properties in the higher price band don't seem to have suffered as much as the ones in the lower end or new properties.   

When asked if she had any advice for people wanting to sell or buy a home, Gaynor said "I firmly believe property prices have gone up hugely in the last 5 years, while the percentage they may have gone down recently is quite small so I think it is still worth putting your property on the market. People do still want to move and as soon as confidence builds and we start to see more new properties on the market, we'll see more mortgage deals being done as well."