But Nationwide says monthly fall of just 0.4% does not signal market recovery

Average house prices have fallen by just 0.4% in November, despite the deterioration of the UK economy in recent weeks.

The moderate fall reported by Nationwide followed a 1.4% decline in average house prices in October.

House prices have now fallen 13.9% in the past 12 months, compared with a 14.6% annual fall to October.

The price of a typical house is now £158, 442, about £25,000 less than a year ago.

Fionnuala Earley, Nationwide's chief economist, said the deceleration in price falls did not signal a recovery in the housing market.

She said: “The labour market is weakening, which will inevitably hinder market demand, particularly when property remains expensive relative to earnings.

“With prices falling at their current rate there is also little incentive for new borrowers to hurry into the market.”