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The news could convince some investors that the stock market is a much more viable option than the property market.
Martin Gahbauer, senior economist at Nationwide, said an end to the deterioration of the wider economy is a precondition to recovery In the housing market.
"However, while the economic news is clearly negative and there appears little prospect for noticeable improvement in the short term," he commented.
Nationwide have, however, argued that bailouts of the UK's banks and steep cuts in interest rates could end up having a positive affect on house prices.
The state of the country's housing market is one of the chief reason why the International Monetary Fund expects the UK' to be hit harder by the recession than other major economies.
