House prices are falling at their fastest rate for 18 years, the UK's largest building society said today.

The Nationwide said the price of a typical house fell by 10.5 per cent over the last 12 months to £164,654.

This is the first time annual house price falls have reached double digit levels since the fourth quarter of 1990.

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said the prices of a typical house fell by 1.9 per cent in August.

She said: "While the pace of monthly falls picked up during the month, the less volatile three month on three month measure, eased very slightly in August to 4.5 per cent from 4.6 per cent in July."

The news follows fury by Kent estate agents at the perceived failure of the Home Information Packs, introduced last year in a bid to speed up the house buying process.

Chairman of the East Kent NAEA John Oakley has said he believed the packs should be scrapped