The UK property market is still cooling, according to the latest government figures.
Prices fell by 0.8% in November, the Department of Communities and Local Government (DCLG) said, compared with a slight rise of 0.1% in October.
The annual rate of house price inflation was 9.5%, down from 11.3% the previous month.
The average figure for the three months to November, seen as a more reliable indicator, fell to 10.5% from 11.1%.
The DCLG calculated that the average price of a home in the UK was now à‚£218,330, down from à‚£220,195 in October.
The figures are based on sale completions and therefore lag behind other house price indexes.
Subdued market
The majority of property indexes are now showing a slowing market as a result of tighter credit conditions and affordability constraints.
Graph of Halifax and Nationwide house price indices
The latest surveys from the Halifax bank and the Nationwide building society showed the market continued to weaken in December, showing annual price growth of 5.2% and 4.8% respectively.
In common with most analysts, Halifax and Nationwide are both predicting that house prices will be flat in 2008.
A smaller number of commentators have said they believe prices will actually fall.
Capital Economics, which has long been forecasting the end of the UK property boom, expects prices to drop by 5% this year and by a further 8% in 2009, effectively wiping out the gains of the past 18 months.
The Bank of England's Monetary Policy Committee (MPC) voted unanimously to cut interest rates from 5.75% to 5.5% at its December meeting.
The MPC decided to hold rates earlier this month, but many economists expect it to cut again very soon, possibly as early as next month.
Regional breakdown
The DCLG statistics show that London recorded the biggest annual inflation rate in November at 14.1%, while the lowest was in the West Midlands at 4.3%.
London also had the highest average house price of any English region at à‚£336,095.
The average house price across England as a whole was à‚£225,957, compared with à‚£225,890 in Northern Ireland, à‚£168,158 in Wales and à‚£164,719 in Scotland.
Price inflation eased further for first-time buyers, with the rate dropping from 10.9% in October to 9.4% in November.
The average price paid by first-time buyers across the whole of the UK was à‚£165,230, down from à‚£166,764 the previous month.
95D aksed me about house prices in the UK, here're the latest figures. For quick calculation, 1 GBP ~ 1.3€ (4/3
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