UK house prices fall at fastest rate since 2009 after interest rate rises

Nationwide says cost of a typical home is 260,828 after 3.8% year-on-year drop in July

• UK mortgage approvals rise despite surge in interest rates
• Analysis - mortgage rates show sign of easing

UK house prices fell last month at the fastest annual rate in 14 years, as higher interest rates hamper people's ability to buy a property with a mortgage.

Nationwide building society reported that prices fell 3.8% year on year, the sharpest drop since July 2009 when the global economy was in the grips of financial crisis. It compared with a fall in annual prices of 3.5% in June.