Nationwide says higher borrowing costs have led to a slowdown in activity in the housing market.
House prices fell by 5.3% in August compared with the year before, their biggest annual decline since 2009, according to Nationwide.
The building society said the drop represented a fall of £14,600 on a typical home in the UK since house prices peaked in August 2022.
It said higher borrowing costs for buyers had led to a slowdown in activity in the housing market.
Mortgage approvals have also been about 20% below average levels in 2019.