FXstreet.com (Barcelona) - House prices have posted a record drop in the United Kingdom in May affected by problems in the credit markets, according to the latest Nationwide housing prices report.

Prices of houses have declined 2.5% in may from April, the largest monthly decline seen in the history of the Nationwide index, while on the year, housing prices declined 4.4%, the biggest annual fall since the year 1992.

The price of a typical house, according to data by Nationwide, is now £173,583, £8,000 below the level in May last year, although the housing price growth seen in the last three years has to be taken in account, as prices today are still 5% above those in May 2006, and 10% above May 2005.