House prices rose a modest 0.3 per cent in November but this caused a dip in the annual rate of growth from 9.0 per cent to 8.5 per cent according to the Nationwide.
It says the average price of a home in the UK is now £189,388 - that's £55 more than a month ago.
Activity levels have remained relatively weak in recent months. The number of mortgages approved for house purchase in September was almost 20 per cent below the level at the start of the year and 27 per cent below the long-term average. Similarly, turnover rates are well below long-term averages says Robert Gardner, Nationwide's chief economist.
But the Nationwide says there is a disconnect between the slowdown in the housing market in recent months and broader economic indicators, which have remained relatively upbeat.
In particular, the labour market has continued to improve, with employment rising strongly and the unemployment rate falling sharply in recent months (at six per cent in the three months to September, the unemployment rate is well below the 7.6 per cent prevailing over the same period last year) says Gardner.
However, he warns the market will remain sticky in the short term, saying: Forward looking indicators, such as new buyer enquiries point to further softness.
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