Source: http://www.guardian.co.uk Nationwide said prices fell 14.6% over the past 12 months to £158,872, and dropped 1.4% in the month to October - the 12th monthly fall in a row.  Economists have predicted that house prices have a lot further to fall. Howard Archer at IHS Global Insight, said: "Faster rising unemployment, major concerns over recession and widespread expectations that house prices will come down further seem set to depress housing market activity and prices for some considerable time to come."  Nationwide is the first major lender to report on the state of the market in October and many had hoped that transactions had picked up after the Bank of England cut interest rates by 50 basis points, to 4.5%, earlier in the month.  However, analysts said that lower interest rates were not helping free up the mortgage markets. Ed Stansfield, property economist at consultants Capital Economics, said: "We expect the Bank of England will cut interest rates to 1%. With unemployment rising and expectations that house prices have much further to fall still widespread, lower interest rates will not stimulate housing demand. Lower interest rates will also do nothing to loosen mortgage lending criteria."  Bank of England mortgage data this week showed that mortgage approvals in September were 67% down on the same month a year ago. Banks and building societies have raised interest rates on mortgages as the credit crunch worsens.  Liberal Democrat Treasury spokesman, Lord Oakeshott, said: "British house prices and house builders are being hammered by rising unemployment, as in the 1990s recession. The government must empower councils and housing associations to spend the £8bn affordable housing allocation now on buying unsold homes and land at bargain basement prices."