Nationwide warns of further house price fall in 2009

The UK's biggest mortgage lender has said it expects house prices to continue to fall during the coming year.

But the Nationwide also said the recent cuts in the interest base rate would minimise the number of people who were unable to afford mortgage payments and ease the burden for those coming off existing fixed-rate deals.

It also predicted that lower house prices would make it more affordable for first-time buyers to get on the housing market, paving the way for an eventual recovery.