Trade-weighted pound hits 12-yr low on weak econ view

* Trade-weighted sterling at 12 year-low of 89.7 =GBP

* Pound near record trough vs euro; at 80.60 pence EURGBP=

* UK housing, retail data reinforces gloom on economy

LONDON, Aug 28 (Reuters) - Sterling fell to a 12-year low on a trade-weighted basis on Thursday as weak UK house price and retail sales data intensified fears of a recession, pushing the UK currency close to a record low versus the euro.

British house prices fell 1.9 percent in August, to post their biggest annual drop since the series was introduced in 1991, the Nationwide building society said.

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Further reinforcing negative sentiment on the UK economy, British retail sales fell at their sharpest pace since records began in 1983, according to a survey from the Confederation of British Industry [ID:nLS505459].

"What's noticeable is that both sets of data are record lows for the series, and that really tells you about the scale of the problems affecting the UK economy," said Simon Derrick, head of currency research at Bank of New York Mellon.