According to Nationwide, house prices fell 0.4% between March and April to an average price of £151,861 after rebounding 0.9% in the previous month. Economists had forecast a more pronounced fall of 1.2% for the period.

On an annualized basis, house prices decreased 15.0%, less than the 15.8% contraction expected and March's 15.7% decline.

Nationwide chief economist Fionnuala Earley said government measures, including a scheme for government guarantees of new, high-quality residential mortgage-backed securities, are welcome and will provide a boost to available mortgage credit. However, lack of credit availability is only part of the problem, Early added.

"Lenders have already indicated that the availability of credit is less of an issue than it has been, but at the same time expect that the demand for secured lending will fall further," Early said in a press release. "Given the weakness of the economy and the expected further increase in unemployment, this comes as no surprise."

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