House prices fall in November

The latest house price report published by Nationwide has revealed that property prices have fallen in November.

According to the firm, house prices fell by 0.8 per cent in November, taking the annual rate of increase to 6.9 per cent.

Nationwide noted that the average house price stands at £184,099, down from £186,044 in October.

Commenting on the data, Fionnuala Earley, the company''s chief economist, said that November''s 0.8 per cent fall is the first since February 2006 and the largest decrease since June 1995.

Looking forward to 2008, Ms Earley said: "We already expect economic conditions to be more difficult for the housing market next year, but we do not expect a recession."

In October, the Council of Mortgage Lenders predicted that house price inflation would continue to be positive next year and although gross mortgage lending is expected to fall, it will remain above the levels recorded in 2005.

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