British house prices fell 0.4 per cent this month as the credit crisis continues to hit the housing market, but the annual rate of decline eased slightly following October's record drop, a survey showed today.
The Nationwide building society said house prices were 13.9 per cent lower than a year ago in November at £158,442 ($242,500) - a fall of more than £25,000. In October, house prices were 14.6 per cent down on the year.
Nationwide revised up its October monthly reading slightly to show a 1.3 per cent fall over the month, compared with a previously reported 1.4 per cent decline.
The figures may be taken as a sign that the housing market could be slowly improving following the government's bank rescue plan, support measures and the Bank of England's 1.5 percentage point rate cut, but analysts at Nationwide were cautious.
Most economists expect the market to remain extremely weak for some time as Britain goes through its first recession since the early 1990s.
"With the economy in recession, conditions do not appear very favourable for a swift recovery in the housing market," said Fionnuala Earley, Nationwide's chief economist.
"The labour market is weakening, which will inevitably hinder market demand, particularly when property remains expensive relative to earnings."
Reuters