House prices have fallen for the first time since February according to Nationwide Building Society.

A shortage of buyers meant that the average price of a UK property dropped 0.5% to £169,347 between June and July. The dwindling number of house hunters has been out down to uncertainty over jobs and the wider economy.

Home information packs were also scrapped which tempted more sellers on to the market.

In spite of the drop, prices remain higher on a year-on-year basis.

Martin Gahbauer, Nationwide's chief economist, said: "A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources. Many potential buyers still lack the confidence to purchase their first home or trade up when faced with uncertainty over future income and employment prospects."