Record drop for UK house prices

(02:08) Report

Oct 2 - Investors speculate the figures increase the chance of an interest rate cut by the Bank of England next week.

The drop in house prices has been a key element of the financial crisis that is threatening to send many industrialised economies into recession.

But Nationwide's chief economist Fionnuala Earley says that after a decade of price rises, the market is correcting itself.

Stefanie McIntyre reports.

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