U.K. house prices have dropped by the most in 25 years as the global financial crisis discouraged buyers and prompted banks to stop lending, HBOS PLC said Thursday.

The average cost of a home dropped 13.3%, to $296,000, in September from the same month a year earlier, the most since the United Kingdom's largest lender began tracking the market in 1983. Prices were down 1.3% from August.

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