UK house prices have seen their first year-on-year fall in eight years with a 0.1 per cent decrease on last June.
Nationwide told the BBC that this was the first annual fall since December 2012. There has also been a month-on-month decrease in property value of 1.4 per cent from the end of May to the end of June.
Residential sales and viewings have taken a hit in the past few weeks, with many estate agents opting for "virtual tours" for prospective buyers.
The number of quarterly UK property transactions has also fallen below 50,000 for the first time since 2009.
Nationwide described the next few months for the UK housing market as being "highly uncertain".
Despite government guidance that viewings, sales and new tenancies can now be completed, a lack of certainty about employment for many people has left people wary about large financial moves.
"With lockdown measures due to be eased in the weeks ahead, housing market activity is likely to edge higher in the near term, albeit remaining below pre-pandemic levels. Nevertheless, the medium-term outlook for the housing market remains highly uncertain," Robert Gardner, chief economist at Nationwide, told the BBC.
This is mixed news for first-time buyers, as lower house prices make getting a mortgage more affordable, but it is also suspected that lending criteria will be rather strict for some time to come.
The average home, according to Nationwide, is now worth just over £216,000.
MD at mortgage broker Coreco, Andrew Montlake, wasunsurprised at the news: "The property market was never going to get through such a profound economic shock without taking a material hit."
"The second half of 2020 is going to be the real test for the property market, as government support for workers is slowly removed and we see a rise in unemployment.
"The government and Treasury are going to be tested like never before as they seek to keep people in jobs, which will clearly be pivotal to the future direction of house prices."
