This was the sixth consecutive fall in this measure of the underlying trend but was an improvement on the 1.0% decrease in October. Prices were 'virtually unchanged' compared with November 2011 at an average of £160,879.
Prices in the three months to November were 1.3% lower than in the same period a year earlier. This is the same as the annual rate at the end of 2011: -1.3% in December 2011.
Improvement in mortgage approvals continues. The industry-wide number of mortgages approved to finance house purchase rose for the fourth consecutive month in October. Approvals for purchase - a leading indicator of completed house sales – increased by 5% to 53,000 in October. There was a 19% rise between June and October on a seasonally adjusted basis, but approvals in October were only 1% higher than a year earlier.
In a separate report released today, Halifax expects house prices to remain broadly unchanged nationally next year.
Commenting, Martin Ellis, housing economist, said:
"There has been very little change in house prices overall during the past year with the average UK price in November almost identical to that in November 2011. Prices in the three months from September to November were 0.7% lower than in the preceding three months.
"Both demand and supply pressures in the market have altered little during the course of 2012, and this has been the key reason for the lack of anything other than modest changes in house sales and prices at a national level compared with a year ago. Challenging economic conditions have constrained housing demand whilst low interest rates have helped to support affordability and demand.
"There are signs that the Funding for Lending Scheme (FLS) is helping to reduce mortgage rates and may be contributing to the recent pick-up in mortgage approvals. The FLS should help to ease credit constraints, resulting in some improvement in mortgage availability in 2013."
