The latest fall represents a 12.4 per cent annual change in the cost of homes.
Fionnuala Earley, Nationwide's chief economist, said that over the course of the past 12 months, there has been "some astonishing and unpredictable developments" in the market.
"It's clear that market conditions can change very quickly but this is not so unusual. Nationwide has been measuring house prices since the 1950s," she explained.
"During that time there have been several cycles of rapid acceleration and rapid cooling of house price growth."
Recent research by Norwich Union found that many people in the UK are unaware of what type of mortgage they are on.
It was also revealed that 67 per cent are not sure how much they pay on their deals.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.