House prices fell for the fourth month in a row during October as buyers continued to stay away from the market, research has indicated.

Property values in England and Wales fell by 0.9% during the month, the biggest drop since January 2009, to leave the average home costing £156,200, according to property intelligence group Hometrack.

The group said a combination of falling demand and rising supply had continued to put house prices under pressure, with falls recorded in 56% of postcode districts while just 0.1% of areas saw a rise. It warned that further price falls were "inevitable" during the rest of the year and into 2011.

The number of new buyers registering with estate agents dropped by 2% during October, the fourth month in a row in which demand has declined. But the number of people putting their homes up for sale continued to increase, rising by 1.9%.

The supply of homes for sale has now risen by 14% during the past six months, but demand has fallen by 8% during the same period.