House prices down in November
House prices have continued to fall during November, according to a new property market report.
Research by property consultancy Hometrack found that prices dropped by 0.2 per cent in the past month, having fallen by 0.1 per cent in the previous month.
The report also said the annual rate of house price inflation has dropped to 3.6 per cent, its lowest level since July 2006.
Hometrack's figures contained other evidence of a slowdown in housing market activity, including a rise in the average length of time a property is on the market and a drop in the proportion of sales achieving the asking price.
Richard Donnell, Hometrack's director of research, said: "It is hard to see the catalyst for any short-term turnaround in market confidence other than interest rate cuts early in the new year."
Responding to the report, Howard Archer of economic and financial analysts Global Insight predicted that house price growth will "flatline for an extended period", but that falls in property value would be limited by the ongoing lack of supply.
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