The UK property market is still cooling, according to the latest figures.

Prices fell by 0.8 per cent in November, the Department of Communities and Local Government (DCLG) said, compared with a slight rise of 0.1 per cent in October.

The annual rate of house price inflation was 9.5 per cent, down from 11.3 per cent the previous month. The DCLG calculated that the average price of a home in the UK was now £218,330, down from £220,195 in October. The majority of property surveys are now showing a slowing market as a result of tighter credit conditions and affordability constraints. The latest research from the Halifax and Nationwide showed the market continued to weaken in December, showing annual price growth of 5.2 per cent and 4.8 per cent respectively.

In common with most analysts, Halifax and Nationwide are both predicting that house prices will be flat in 2008.