Commenting on the fall in house prices reported by Halifax, Teather said: "This shows that the brief house price rise last month was just a blip and that we are still in the midst of a severe housing crisis.
"The scale of the crisis shows that the Government has got to tackle the twin threats of repossessions and the collapse of the construction industry.
"Ministers must protect people by making sure repossessions are only ever a last resort and invest massively in social house building to support struggling construction companies."
