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Calculations by the Liberal Democrat’s show that the average price of the 3,993 houses sold at auction between June and August this year in the UK was £130,400.

This is 23.4 per cent lower than the average of £170,300 during the same period last year.

Commenting, Treasury spokesman, Lord Oakeshott said the figures show just how fast house prices are falling at the sharp end.

"The published house price indices are well behind the curve.

"Property professionals are now pricing in a fall of 31 per cent in the Halifax House Price Index from its peak this January to the bottom in 2011, followed by a very slow recovery."

According to Oakeshott, the recent stamp duty suspension is "pointless at best" and could even be dangerous if it ends up sucking vulnerable first time buyers into negative equity.

"The Government must do far more to empower housing associations and councils to buy unsold homes and land, which would save our building industry from collapse.

"The Government must also act to ensure the banks only use repossessions as last resort," he added.