House prices across the UK fell 11.5 per cent in January from a year earlier, the government reported today.

The average price dropped to £195,724 in January, the Department for Communities and Local Government said.

But prices held up best in Scotland, where they were 6.3 perc ent below the January 2008 average, the report said.

It said house prices fell 3.9 per cent across the UK in the quarter ending January 2009, compared to a drop of 5.2 per cent in the previous three months.

The report indicated that first-time buyers were benefitting from the housing slump: the prices they paid were 15.4 per cent lower than a year ago.

However, other reports have shown that financing has become more elusive for first-time buyers, as banks are lending substantially less than the full value of properties.