LONDON, Oct 2, 2008 (AFP) - House prices in Britain plunged by a record 12.4 percent during September compared with the same month in 2007, as the credit crunch took its toll, a survey by Nationwide bank showed on Thursday.

Prices dropped by 1.7 percent in September from August, added Nationwide, one of Britain's biggest lenders of home loans.

The average cost of a property in Britain fell to 161,797 pounds (205,809 euros, 285,755 dollars) in September.

'The higher cost and lower availability of finance resulting from the credit crunch were clearly important factors in triggering the slowdown (that began a year ago) and bringing us to where we are now,' said Fionnuala Earley, Nationwide's chief economist.

'Although the next year or two will be difficult, over time the global economy will recover from current difficulties, helping to end the cyclical downturn in property markets,' she added.